Canada: Price pressures remain mild in October
November 23, 2012
In October, consumer prices rose a seasonally adjusted 0.3% over the previous month, which was above the 0.2% rise recorded in September. According to Statistics Canada, the monthly price increase mainly reflected higher prices for transportation as well as for food. Despite the monthly increase, annual headline inflation remained unchanged at 1.2% in October, overshooting market expectations of a 1.1% increase. Currently, inflation remains within the Central Bank's target of 2.0% with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, annual average inflation edged down from 2.0% in September to 1.8% in October. Simultaneously, core inflation, which excludes volatile items such as gasoline and fresh food, stabilized at 1.3% in October.