Inflation in Canada
Canada - Inflation
Inflation is unchanged in July at Central Bank’s target midpoint
Consumer prices increased a seasonally-adjusted 0.4% from a month earlier in July, contrasting June’s 0.1% fall. According to Statistics Canada, the increase was mostly driven by higher prices for transportation and recreation and education.
Inflation was stable at June’s 2.0%, beating market analysts’ projections and remaining at the midpoint of the Central Bank’s target range of 1.0% to 3.0%. Meanwhile, annual average inflation softened marginally to 2.0% in July (June: 2.1%).
Going forward, inflation should remain relatively stable and well within the target range, supported by a tight labor market, strong wage growth and the recent introduction of the carbon tax. That being said, developments in oil markets remain a key risk to the inflation outlook.
In its July monetary policy report, the Bank of Canada projected inflation averaging 1.8% in 2019 and 1.9% in 2020. FocusEconomics Consensus Forecast analysts, meanwhile, see inflation averaging 1.9% in 2019, which is unchanged from the previous month’s forecast. For 2020, our panelists see inflation averaging 2.0%. A new FocusEconomics Consensus Forecast will be published on 27 August.
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||1.13||1.00 %||Sep 03|
|Exchange Rate||1.32||0.15 %||Sep 04|
|Stock Market||16,449||0.23 %||Sep 04|
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September 10, 2019
Housing starts increased to 226,639 units on a seasonally-adjusted annualized rate (SAAR) basis in August, according to the Canada Mortgage and Housing Corporation (CMHC), up from July’s downwardly revised 222,467-unit reading (previously reported: 222,013) and smashing analysts’ expectations of a 215,000 print.
September 4, 2019
On 4 September, the Bank of Canada (BoC) left its target for the overnight rate unchanged at 1.75%, as had been widely anticipated by market analysts. The Bank’s decision to stand pat was backed by stronger-than-expected growth in the second quarter.
September 3, 2019
In August, the IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 49.1 from 50.2 in July.
August 30, 2019
Economic activity surged in the second quarter, with seasonally-adjusted annualized (saar) growth accelerating from Q1’s upwardly revised 0.5% (previously reported: +0.4% saar) to 3.7% in Q2 and surpassing market expectations of 3.0%.
August 21, 2019
Consumer prices increased a seasonally-adjusted 0.4% from a month earlier in July, contrasting June’s 0.1% fall.