Canada: Inflation ticks up in November
December 20, 2013
In November 2013, consumer prices increased a seasonally-adjusted 0.2% over the previous month, which contrasted the 0.1% decrease recorded in October. According to Statistics Canada, the increase reflected higher prices in six of the eight categories measured, with alcoholic beverages and tobacco products registering the largest gains.
Annual headline inflation ticked up from 0.7% in October to 0.9% in November, which was just below market expectations of an acceleration to 1.0%. Inflation remains outside the Central Bank's tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Meanwhile, annual average inflation was unchanged, holding steady at 0.9% for the second consecutive month. Core annual inflation, which excludes volatile items such as gasoline and fresh food, inched down from 1.2% in October to 1.1%.
According to its October Monetary Policy Report, the Bank of Canada expects headline inflation to average 1.8% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 1.6% in 2014, which is down 0.1 percentage points from the previous month's forecast. The panel expects inflation to average 1.9% in 2015.
Author: Carl Kelly, Economist