Inflation in Canada
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
|Inflation Rate (CPI, annual variation in %)||2.9||1.5||0.9||1.9||1.1|
5 years of economic forecasts for more than 30 economic indicators.
Canada Inflation Chart
Source: Statistics Canada.
|Bond Yield||2.02||5.21 %||Jul 25|
|Exchange Rate||1.24||-0.51 %||Jul 26|
|Stock Market||15,171||-0.20 %||Jul 26|
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July 21, 2017
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.
Canada: Bank of Canada hikes policy rate by 25 basis points in July, opens the door to tightening cycle
July 12, 2017
On 12 July, the Bank of Canada (BoC) raised its target for the overnight rate by 25 basis points to 0.75% in what was the Bank’s first rate hike in seven years.
July 12, 2017
In June, the Teranet-National Bank National Composite House Price Index recorded a monthly increase of 2.6%, which was the fastest monthly acceleration on record.
July 11, 2017
Seasonally-adjusted annualized housing starts registered 212,700 units in June, according to the Canada Mortgage and Housing Corporation (CMHC).
July 7, 2017
The manufacturing sector seemed back on-track in June following a weak performance in May.