Canada Inflation Rate Steady at 1%

Consumer prices in Canada increased 1 percent year-on-year in October of 2015, the same as in September and matching market expectations. The inflation rate remained below the central bank’s 2 percent target for the 11th straight month, dragged down by falling energy prices. In contrast, core inflation was recorded at 2.1 percent.
Statistics Canada | Joana Taborda | 11/20/2015 1:55:45 PM
Prices were up in seven of the eight major components on a year-over-year basis in October, with the rise in the CPI led by higher prices for food. Increases in the shelter index and the household operations, furnishings and equipment index also contributed to higher consumer prices. The transportation index, which includes gasoline, recorded its 12th consecutive year-over-year decline.

Food prices were up 4.1 percent year over year in October, after increasing 3.5 percent in September. This acceleration was attributable to higher prices for food purchased from stores, which increased 4.6 percent, after rising 3.9% percent the previous month. Prices for fresh fruit increased more (+13.0 percent) than in September (+8.5 percent). In addition, the dairy products index increased, following a decrease the previous month. Prices for food purchased from restaurants were up 2.7 percent.

The index for recreation, education and reading rose 1.9 percent in the 12 months to October, following a 2.5 percent increase in September. This deceleration was partly attributable to the traveller accommodation index, which was up 4.8 percent, after rising 10.8 percent the previous month.

The shelter index was up 1.1 percent, matching the rise in September. The natural gas index decreased 10.9 percent in the 12 months to October, after declining 4.4 percent the previous month. Conversely, property taxes rose 3.0 percent, after being up 2.2 percent year over year since last October.

The transportation index declined 3.2 percent, after decreasing 3.5 percent in September. This smaller year-over-year decline was mainly attributable to gasoline prices, which fell 2.0% on a month-over-month basis in October, a smaller monthly decrease than the index recorded in the same month last year.

Annual core inflation was recorded at 2.1 percent, the same as in the previous two months.

On a monthly basis, consumer prices edged up 0.1 percent, rebounding from a 0.2 percent fall in September

Canada Inflation Rate Steady at 1%