Canada Inflation Rate Slows in September


Consumer prices in Canada rose 1 percent year-on-year in September of 2015, slowing from a 1.3 percent rise in the previous month, due to falling gasoline prices.

Prices were up in seven of the eight major components on a year-over-year basis in September, with the rise in the CPI led by higher prices for food. Increases in the household operations, furnishings and equipment index and the shelter index also contributed to higher consumer prices. The transportation index, which includes gasoline, recorded its 11th consecutive year-over-year decline.

Consumers paid 3.5 percent more for food in September compared with the same month a year ago. Prices for food purchased from stores were up 3.9 percent year over year; prices for fresh vegetables increased more (+11.5 percent); the meat index rose 4.4 percent and prices for food purchased from restaurants were up 2.7 percent.

The index for recreation, education and reading increased 2.5 percent in the 12 months to September, after rising 2.1 percent the previous month. This acceleration was led by the traveller accommodation index, which was up 10.8 percent on a year-over-year basis in September, after increasing 7.4 percent in August. Tuition fees were up 2.8 percent in September compared with the same month a year earlier.

The clothing and footwear index was up 1.2 percent in the 12 months to September, after rising 2.1 percent the previous month. This deceleration was partly attributable to the men's clothing index and children's clothing index, which registered smaller year-over-year increases in September than in August. Additionally, the index for women's clothing recorded no year-over-year change, after posting an increase the previous month.

The transportation index declined 3.5 percent in the 12 months to September, after decreasing 2.3 percent in August. This larger year-over-year decrease was mainly attributable to gasoline prices, which fell 7.9 percent on a month-over-month basis in September, a larger monthly decrease than the index recorded in the same month the previous year. In contrast, the purchase of passenger vehicles index was up 1.6 percent in the 12 months to September, after increasing 0.6 percent in August.

Annual core inflation was recorded at 2.1 percent, the same as in August.

On a monthly basis, consumer prices fell 0.2 percent after being flat in the previous month.

Canada Inflation Rate Slows in September


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
10/23/2015 1:54:44 PM