Inflation in Canada

Canada Inflation | Economic News & Forecasts

Canada - Inflation

Inflation falls to a nearly two-year low in June

Seasonally-adjusted consumer prices were flat in June from a month earlier, contrasting May’s 0.2% fall and coming in just above the 0.1% decline expected by market analysts. According to Statistics Canada, the null print was the result of a sharp decline in transportation prices being largely offset by a jump in food, alcohol and tobacco prices. Meanwhile, the remaining five subcomponents of the index posted more moderate gains.

Inflation fell to 1.0% in June from 1.3% in May, landing just within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Meanwhile, annual average inflation was also stable at 1.5% for a fifth consecutive month in June. Core inflation, which excludes volatile items including gasoline and fresh food, was stable at 0.9% in June from a month earlier.

In its July monetary policy report, the Bank of Canada revised its inflation expectations downward to 1.6% in 2017 and to 1.8% in 2018. FocusEconomics Consensus Forecast panelists now expect inflation to average 1.8% in 2017, which is down 0.1 percentage points from last month’s forecast. For 2018, our panelists expect inflation to average 2.0%.

Canada - Inflation Data

2011  2012  2013  2014  2015  
Inflation Rate (CPI, annual variation in %)2.9  1.5  0.9  1.9  1.1  

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Canada Inflation Chart

Canada Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: Statistics Canada.

Canada Facts

Bond Yield2.025.21 %Jul 25
Exchange Rate1.24-0.51 %Jul 26
Stock Market15,171-0.20 %Jul 26

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