Inflation in Canada
Canada - Inflation
Inflation inches down from January’s over two-year high
In February, seasonally-adjusted consumer prices declined 0.2% from a month earlier (January: +0.7% month-on-month), which marked the steepest monthly drop in a year. According to Statistics Canada, prices fell in three of the eight major subcomponents of the index. The transportation subcomponent recorded the largest decline, while shelter and household operations, furnishings and equipment prices registered small decreases. Food prices were stable from a month earlier in February.
Inflation inched down to 2.0% in February from 2.1% in January, which had marked the highest print in more than two years. February’s result landed at the midpoint of the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Meanwhile, annual average inflation in February rose to 1.5% from January’s 1.4% print. Core inflation, which excludes volatile items including gasoline and fresh food, was unchanged from January at 1.7%.
In its January monetary policy report, the Bank of Canada reported that it expects inflation to average 1.8% in 2017 and 1.9% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2017, which is up 0.1 percentage points from last month’s forecast. Our panelists also expect inflation to average 2.0% in 2018.
Canada - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.3||1.8||2.9||1.5||0.9|
5 years of economic forecasts for more than 30 economic indicators.
Canada Inflation Chart
Source: Statistics Canada.
|Bond Yield||1.55||-1.27 %||Apr 05|
|Exchange Rate||1.34||-0.16 %||Apr 06|
|Stock Market||15,697||0.35 %||Apr 06|
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April 10, 2017
Seasonally-adjusted annualized housing starts registered 253,720 units in March, according to the Canada Mortgage and Housing Corporation (CMHC).
April 7, 2017
The Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, increased by a seasonally-adjusted 6.1 points from a month earlier to arrive at 61.1 in March.
March 24, 2017
In February, seasonally-adjusted consumer prices declined 0.2% from a month earlier (January: +0.7% month-on-month), which marked the steepest monthly drop in a year.
March 21, 2017
The Ivey Purchasing Managers’ Index (PMI), sponsored by the Richard Ivey School of Business and the Purchasing Management Association of Canada, decreased a seasonally-adjusted 2.2 points in February, falling from 57.2 in January to 55.0.
March 14, 2017
The Teranet-National Bank National Composite House Price Index recorded a monthly increase of 1.0% in February, the steepest rise in six months and well above January’s 0.5% increase.