Inflation in Canada
Canada - Inflation
Inflation accelerates to a six-month high in November
Consumer prices increased 0.2% on a seasonally-adjusted basis from a month earlier in November, softer than October’s 0.3% uptick in November. According to Statistics Canada, higher prices for transportation, and alcoholic beverages, tobacco products and recreational cannabis drove the uptick in November.
Inflation was jumped to 2.2% in November, the highest in six months and up from 1.9% in October. November’s reading met market analysts’ expectations and climbed above of the 2.0% midpoint of the Central Bank’s target range of 1.0% to 3.0%. Meanwhile, annual average inflation was steady at 1.9% in November.
Commenting on November’s print, James Marple, a senior economist at TD Economics, noted:
“The Bank of Canada has noted how close inflation is to its target in its deliberations on monetary policy. Still, it is more likely to respond to data on the real economy, especially the state of the job market, as it plots its next course of action in the New Year.”
Going forward, inflation should remain close to the Central bank’s target rate, supported by robust wage growth and the recently introduced carbon tax. That being said, developments in commodity prices remain a key risk to the inflation outlook.
In its October monetary policy report, the Bank of Canada projected inflation averaging 1.8% in 2020 and 2.0% in 2021. FocusEconomics Consensus Forecast analysts, meanwhile, see inflation averaging 1.9% in 2020, which is unchanged from the previous month’s forecast. For 2021, our panelists see inflation averaging 1.9% again.
Canada - Inflation Data
|Inflation Rate (CPI, annual variation in %)||0.9||1.9||1.1||1.4||1.6|
5 years of economic forecasts for more than 30 economic indicators.
Canada Inflation Chart
Source: Statistics Canada.
|Bond Yield||1.70||1.00 %||Dec 31|
|Exchange Rate||1.30||0.15 %||Jan 01|
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January 9, 2020
Housing starts decreased to 197,329 units on a seasonally-adjusted annualized rate (SAAR) basis in December, according to the Canada Mortgage and Housing Corporation (CMHC), down from November’s revised 204,320-unit reading (previously reported: 201,318), and well below analysts’ expectations of 210,200 units.
January 2, 2020
In December, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) inched down to 50.4 from 51.4 in November.
December 23, 2019
The economy shrank 0.1% month-on-month in October, contrasting September’s 0.1% rise and short of analysts’ expectations of another 0.1% increase.
December 18, 2019
House prices increased 0.16% on a month-on-month non-seasonally-adjusted basis in November, according to the Teranet-National Bank Composite House Price Index, contrasting October’s 0.05% decrease.
December 18, 2019
Consumer prices increased 0.2% on a seasonally-adjusted basis from a month earlier in November, softer than October’s 0.3% uptick in November.