Inflation in Canada
Canada - Inflation
Inflation moderates in April
Seasonally-adjusted consumer prices rose 0.1% from a month earlier in April, matching March’s 0.1% increase. According to Statistics Canada, the increase was driven by higher prices for food; shelter; household operations, furnishings and equipment; and clothing and footwear. The rise was partially offset by lower prices for recreation, education, and reading; transportation; and health and personal care.
Inflation eased from its over three-year high of 2.3% in March to 2.2%, a notch below market expectations. April’s moderation was due mostly to the slower rise is fuel costs. Meanwhile, annual average inflation ticked up to 1.7%, the highest level in three years, from 1.6%. Core inflation, which excludes volatile items including fuels and fresh produce, edged up to 1.5% (March: 1.4%).
April’s milder inflation could discourage the Bank of Canada from raising the target for the overnight rate at its 30 May monetary policy meeting. However, a rate hike should not be entirely written off given above-target inflation and recent economic data pointing to stronger fundamentals in the second quarter. A number of FocusEconomics analysts currently expect a rate hike in the second quarter.
Canada Inflation Forecast
In its April monetary policy report, the Bank of Canada forecast inflation averaging 2.3% in 2018 and 2.1% in 2019. FocusEconomics Consensus Forecast analysts see inflation averaging 2.2% in 2018, which is up 0.1 percentage points from last month’s forecast. For 2019, our panelists see inflation averaging 2.0%.
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||2.32||1.00 %||Jun 13|
|Exchange Rate||1.31||0.15 %||Jun 14|
|Stock Market||16,329||0.23 %||Jun 14|
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May 18, 2018
Seasonally-adjusted consumer prices rose 0.1% from a month earlier in April, matching March’s 0.1% increase.
May 14, 2018
House prices inched up in April, with the Teranet-National Bank National Composite House Price Index rising 0.2% from a month earlier, following a flat print in March.
May 8, 2018
Housing starts on a seasonally-adjusted annualized (SAAR) basis moderated to 214,400 units in April, according to the Canada Mortgage and Housing Corporation (CMHC).
May 4, 2018
In April, the Ivey Purchasing Managers Index (PMI), prepared by the Richard Ivey School of Business, jumped 11.7 points to a multi-year high 71.5 points.
May 1, 2018
Canada’s economy rebounded in February following a one-off contraction at the outset of the year as facilities in the oil and gas sector got back online following unscheduled maintenance shutdowns.