Inflation in Canada
Canada - Inflation
Inflation dips in January, unlikely to shake Bank of Canada’s plans
Seasonally-adjusted consumer prices rose 0.5% from a month earlier in January, jumping from December’s downwardly revised 0.1% increase (previously reported: +0.2% month-on-month). According to Statistics Canada, January’s acceleration was primarily due to higher shelter prices and a significant jump in household-related charges. Meanwhile, the rise in food prices eased marginally from December.
Inflation eased in January on a slower rise in fuel and vehicle prices, falling to 1.7% from 1.9% in December but still landing comfortably within the Bank of Canada’s target range of 2.0% plus/minus 1.0 percentage point. Market analysts has expected a weaker reading of 1.4%. Meanwhile, annual average inflation was stable from a month earlier at 1.6%. Core inflation, which excludes volatile items including fuels and fresh produce, was stable from December at 1.2%.
Commenting on January’s reading and its implications for the Bank of Canada’s ongoing tightening cycle, Nathan Janzen, Senior Economist at Royal Bank of Canada, noted:
“There’s still not a lot of evidence that inflation pressures are really getting out of hand in a way that would force the Bank to hike more quickly than they’ve been planning to. At the same time, you are seeing the firming that’s been expected, so that means the economy is probably still strong enough, in their view, to withstand further gradual rate hikes.”
The Bank of Canada expects inflation to average 2.0% in 2018 and 2.1% in 2019. FocusEconomics Consensus Forecast panelists foresee inflation averaging 2.0% in 2018, which is unchanged from last month’s forecast. For 2019, our panelists also expect inflation to average 2.0%.
Canada - Inflation Data
|Inflation Rate (CPI, annual variation in %)||1.5||0.9||1.9||1.1||1.4|
5 years of economic forecasts for more than 30 economic indicators.
Canada Inflation Chart
Source: Statistics Canada.
|Bond Yield||2.34||1.00 %||Feb 21|
|Exchange Rate||1.27||0.15 %||Feb 22|
|Stock Market||15,508||0.23 %||Feb 22|
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February 23, 2018
Seasonally-adjusted consumer prices rose 0.5% from a month earlier in January, jumping from December’s downwardly revised 0.1% increase (previously reported: +0.2% month-on-month).
February 14, 2018
House prices continued their ascent at the outset of the year.
February 8, 2018
Seasonally-adjusted annualized housing starts in January numbered 216,200 units, according to the Canada Mortgage and Housing Corporation (CMHC).
February 6, 2018
The Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, declined for the third consecutive month in January.
Canada: GDP growth hits six-month high in November as nearly all industries expand, plant shutdowns end
January 31, 2018
GDP bounced back in November on strong manufacturing gains, a turnaround from October when temporary factory shutdowns across industries stalled economic growth.