Inflation in Canada
Canada - Inflation
Inflation rises in January
Consumer prices increased a seasonally-adjusted 0.43% in January over the previous month, accelerating from the 0.07% rise logged in December. January's uptick was the sharpest increase in prices since June 2020. Looking at the details of the release, food prices rose in January after dropping in the previous month and prices pressures for transportation picked up pace. In addition, prices for recreation and culture also gained steam.
Inflation came in at 1.0% in January, up from December’s 0.7%. Meanwhile, the trend pointed down slightly, with annual average
inflation coming in at 0.6% in January (December: 0.7%). Lastly, core inflation ticked up to 1.6% from the previous month's 1.5%.
Commenting on January’s print, Royce Mendes a senior economist at CIBC Economics, noted:
“Headline inflation is likely to continue accelerating from here, with base effects pushing the annual pace above 2% in April and May. That will likely prove temporary and the Bank of Canada will look through those increases. With underlying inflationary trends now seeming even weaker than they did previously, central bankers have every reason to keep stimulating the economy.”
FocusEconomics Consensus Forecast analysts, see inflation averaging 1.6% in 2021, which is up 0.1 percentage points from the previous month’s forecast. For 2022, our panelists see inflation averaging 1.8%.
Canada - Inflation Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Inflation Rate (CPI, annual variation in %) | 1.1 | 1.4 | 1.6 | 2.3 | 1.9 |
Canada Inflation Chart
Source: Statistics Canada.
Canada Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 1.70 | 1.00 % | Dec 31 |
| Exchange Rate | 1.30 | 0.15 % | Jan 01 |
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Economic News
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Canada: Housing prices growth loses further steam in January
February 18, 2021
According to the Teranet-National Bank Composite House Price Index, house price growth decelerated to 0.3% on a month-on-month non-seasonally-adjusted basis in January, from December’s 0.6%.
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Canada: Inflation rises in January
February 17, 2021
Consumer prices increased a seasonally-adjusted 0.43% in January over the previous month, accelerating from the 0.07% rise logged in December.
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Canada: Housing starts surge in January
February 11, 2021
Housing starts rose to 282,428 units on a seasonally-adjusted annualized rate (SAAR) basis in January—the highest level since September 2007—according to the Canada Mortgage and Housing Corporation (CMHC), up from December’s 229,350-unit reading.
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Canada: Manufacturing PMI decreases in January, but remains upbeat nonetheless
February 1, 2021
In January, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell from 57.9 in December to 54.4.
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Canada: GDP growth accelerates in November; Preliminary estimate points to a slowdown in December
January 29, 2021
The economy grew 0.7% month-on-month in November, picking up from October’s 0.4% increase, and beating Statistics Canada’s preliminary estimate of 0.4% made back on 27 December.
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