Inflation in Canada
Canada - Inflation
Inflation falls to 15-month low in January
Consumer prices fell a seasonally-adjusted 0.1% from a month earlier in January, contrasting December’s 0.2% increase. According to Statistics Canada, the fall was mostly driven by a decrease in transportation, which was partially offset by an increase in shelter and alcoholic beverages, tobacco products and recreational cannabis prices in January.
Inflation plunged to 1.4% in January, from 2.0% in December, marking a 15-month low. The reading was bang on with market analysts’ expectations and landed below the midpoint of the Central Bank’s target range of 1.0% to 3.0%. Meanwhile, annual average inflation ticked down to 2.2% in January from 2.3% in December. Core inflation, which excludes volatile items including fuels and fresh produce, inched down to 1.5% from 1.7% in December.
Commenting on January’s inflation report, James Marple, senior economist at TD Economics, noted:
“The Bank of Canada is maintaining a bias to further tightening, but with limited inflation and slowing growth there is little urgency on this front. Indeed, much like their counterpart stateside, the benign inflation environment may lead policymakers to question whether further rate hikes are even necessary or whether the current policy setting is the fabled goldilocks “just right”.”
In its January monetary policy report, the Bank of Canada forecast inflation averaging 1.7% in 2019 and 2.0% in 2020. Met the why particular Consensus Forecast analysts saw inflation averaging 1.9% in 2019, which is unchanged from last month’s forecast. For 2020, our panelists saw 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||1.76||1.00 %||Mar 08|
|Exchange Rate||1.34||0.15 %||Mar 11|
|Stock Market||16,116||0.23 %||Mar 11|
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March 13, 2019
House prices fell 0.4% on a seasonally-adjusted monthly basis in February, according to the Teranet-National Bank National Composite House Price Index (January: -0.0%).
March 6, 2019
On 6 March, the Bank of Canada (BoC) left its target for the overnight rate unchanged at 1.75%, as widely expected by market analysts.
March 1, 2019
Economic momentum notably eased in the fourth quarter, with seasonally-adjusted annualized (SAAR) growth markedly decelerating to 0.4% over the previous quarter (Q3: +2.0% SAAR).
March 1, 2019
In February, the seasonally-adjusted IHS Markit Manufacturing Purchasing Managers’ Index (PMI) fell to 52.6 from 53.0 a month earlier, marking a 26-month low.
February 27, 2019
Consumer prices fell a seasonally-adjusted 0.1% from a month earlier in January, contrasting December’s 0.2% increase.