Canada: Inflation stabilizes in September
October 19, 2012
In September, consumer prices rose a seasonally adjusted 0.2% over the previous month, which was below the 0.4% rise recorded in August. According to Statistics Canada, the monthly price increase mainly reflected higher prices for transportation as well as for clothing and footwear. Despite the monthly increase, annual headline inflation remained unchanged at 1.2% in September, undershooting market expectations of a 1.3% increase. Currently, inflation remains within the Central Bank's target of 2.0% with a tolerance margin of plus/minus 1.0 percentage points. Meanwhile, annual average inflation inched down from 2.1% in August to 2.0% in September. Simultaneously, core inflation, which excludes volatile items such as gasoline and fresh food, fell from 1.6% in August to 1.3% in September.
Author: Ricardo Aceves, Senior Economist