Inflation in Canada
Canada - Inflation
Inflation increases to highest level since January 2020 in March
Consumer prices rose a seasonally-adjusted 0.07% in March over the previous month, after rising 0.14% in February. The reading was driven by moderating price pressures for transportation and food.
Inflation increased to 2.2% in March from February’s 1.1%. March's reading marked the highest inflation rate since January 2020. Annual average inflation rose to 0.6% in March (February: 0.5%). Core inflation rose to 1.4% in March from the previous month's 1.2% increase.
Commenting on the latest reading, Royce Mendes, a senior economist at CIBC World Markets, noted:
“Canadian inflation data has entered the phase in which it will be virtually useless to look at year-over-year comparisons when commenting on prices. The very weak readings during the first wave are making it easy for prices to post huge jumps relative to those twelve months ago. As a result, the Bank of Canada won’t be too fussed about the surge in inflation, which could even top 3% in the data for April. Rather, central bankers will be focused on continuing to provide stimulus to the Canadian economy which still requires further healing before the labor market can be expected to sustainably support 2% inflation.”
FocusEconomics Consensus Forecast analysts, see inflation averaging 2.0% in 2021, which is unchanged from the previous month’s forecast. For 2022, our panelists see inflation averaging 1.9%.
Canada - Inflation Data
| 2015 | 2016 | 2017 | 2018 | 2019 | |
|---|---|---|---|---|---|
| Inflation Rate (CPI, annual variation in %) | 1.1 | 1.4 | 1.6 | 2.3 | 1.9 |
Canada Inflation Chart
Source: Statistics Canada.
Canada Facts
| Value | Change | Date | |
|---|---|---|---|
| Bond Yield | 1.70 | 1.00 % | Dec 31 |
| Exchange Rate | 1.30 | 0.15 % | Jan 01 |
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Economic News
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Canada: GDP growth slows in February; preliminary estimate points to an acceleration in March
April 30, 2021
The economy grew 0.4% month-on-month in February, easing from January’s 0.7% increase, and falling slightly short of Statistics Canada’s preliminary estimate of 0.5% growth made on 1 April.
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Canada: Inflation increases to highest level since January 2020 in March
April 21, 2021
Consumer prices rose a seasonally-adjusted 0.07% in March over the previous month, after rising 0.14% in February.
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Canada: Bank of Canada keeps rates unchanged in April, but eases its asset purchasing program
April 21, 2021
At its meeting on 21 April, the Bank of Canada (BoC) kept its target for the overnight rate at 0.25%, its effective lower bound, in line with market analysts’ expectations.
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Canada: Housing prices growth hits the highest level since September 2017 in March
April 20, 2021
According to the Teranet-National Bank Composite House Price Index, house price growth accelerated to 1.5% on a month-on-month non-seasonally-adjusted basis in March, from February’s 0.5%.
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Canada: Minister of finance presents loose budget for fiscal year 2021–2022 in April
April 19, 2021
On 19 April, Deputy Prime Minister and Minister of Finance Chrystia Freeland delivered the government’s budget for FY 2021–2022, which began on 1 April.
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