Nov 23, 2010 Canada Inflation at 2-year High
The inflation rate in Canada was last reported at 2.4 percent in October of 2010. From 1915 until 2010, the average inflation rate in Canada was 3.26 percent reaching an historical high of 21.60 percent in June of 1920 and a record low of -17.80 percent in June of 1921.
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Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. The most well known measures of Inflation are the CPI which measures consumer prices, and the GDP deflator, which measures inflation in the whole of the domestic economy.
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Source: STCA - Statistics Canada, TradingEconomics.com
Canada Inflation at 2-year High Nov 23, 2010 Bloomberg
Canada's annual inflation rate unexpectedly jumped to a two-year high of 2.4 percent in October, but analysts differed on whether the data would prompt the Bank of Canada to raise interest rates sooner than expected.
The October figure, released by Statistics Canada on Tuesday, was higher than the 2.2 percent forecast by market operators. Higher prices for gasoline and energy explained much of the year-on-year increase.
The closely watched core rate, which strips out volatile items and the effects of tax changes, rose to 1.8 percent from 1.5 percent in September.
The Bank of Canada kept interest rates on hold last month after three consecutive hikes and said it would think carefully about raising them again.
It also predicted both measures of inflation would rise to its 2.0 percent target by the end of 2012.
The overall year-on-year inflation figure was the highest since the 2.6 percent recorded in October 2008.
Gasoline prices in October were 8.8 percent higher than a year earlier, following a 3.1 percent year-on-year rise in September. Energy prices were up by 9.1 percent from October 2009 after a 5.6 percent advance in September.
The consumer price index rose by 0.4 percent in October from September while the core rate was also up by 0.4 percent. The seasonally adjusted rate posted a 0.7 percent month-on-month increase, the largest such jump since the 0.8 percent rise posted in January 2006.
Canada Inflation Accelerates May 21, 2010 Bloomberg
May 21, 2010 -- The inflation rate in Canada was 1.80 percent in April of 2010. The 12-month core rate of inflation - which factors out some of the most volatile components - came in at 1.9 per cent. The two per cent threshold is key as that is the Bank of Canada's stated target for the core rate.
Canada’s annual inflation rate accelerated in April, led by car and gasoline prices, giving the central bank more scope to begin raising interest rates as soon as next month.
The consumer price index rose 1.8 percent, faster than 1.4 percent the previous month, on a 16 percent rise in gasoline costs, Statistics Canada said. The index excluding eight volatile items also accelerated, to 1.9 percent from 1.7 percent.
Seven of the eight main categories tracked by Statistics Canada increased in April from a year earlier. Transportation prices increased 6.2 percent, as vehicle prices advanced 5.3 percent and the cost of insuring a car gained 5.6 percent.
Statistics Canada’s index of shelter costs rose 0.8 percent on the year, led by a 3.6 percent gain in the cost of utilities such as electricity, water, natural gas and fuel oil. Mortgage interest costs fell 6.1 percent in April.
Food prices increased 1 percent, the smallest gain since March 2008, while the health and personal care index rose 3.3 percent.
The only category to post a decline was clothing and footwear prices, which fell 1.1 percent.
Overall inflation on a monthly basis rose 0.3 percent after being unchanged in March. The gain was led by higher prices for natural gas, vegetables and airplane tickets. On a monthly basis, core consumer prices also gained 0.3 percent after a 0.2 percent drop in March.
Canada's Inflation Slowed in March to 1.4% Apr 23, 2010
Canada’s annual inflation rate unexpectedly slowed in March to 1.4 percent from 1.6 percent the previous month, as clothing and mortgage interest expenses declined while gasoline costs rose.
The consumer price index excluding eight volatile items also slowed to 1.7 percent from 2.1 percent, Statistics Canada said today in Ottawa.
The Bank of Canada will start raising its key policy rate because of faster-than-expected inflation and economic growth, Governor Mark Carney said yesterday, after dropping a “conditional commitment” on April 20 to keep it unchanged at a record low. Inflation will be “slightly higher” than the bank’s 2 percent target over the next year, the central bank’s quarterly forecast report said yesterday.
In the inflation report, six of the eight main categories tracked by Statistics Canada increased in March from a year earlier. Clothing and footwear prices fell 2.2 percent, led by women’s apparel. Statistics Canada’s index of shelter costs declined 0.7 percent as mortgage interest costs fell 6 percent in March and natural gas dropped 22 percent.
Transportation prices increased 6 percent, led by a 17 percent increase for gasoline. Food prices increased 1.3 percent and automobile insurance premiums increased 5.5 percent.
Overall inflation was unchanged on a monthly basis after gaining 0.4 percent in February. Core consumer prices fell 0.2 percent on the month after February’s 0.7 percent increase, which was the fastest since November 2008.
The Bank of Canada said this week that the faster-than- expected rise in inflation for January and February was due in part to transitory effects such as rising hotel costs during the Vancouver Winter Olympics. Traveler accommodation costs on a monthly basis fell 14 percent in March, bringing them back toward where they were in January, Statistics Canada said.
Canada Core Inflation Rate Unexpectedly Accelerates Mar 19, 2010 Bloomberg
Canada’s core inflation rate unexpectedly accelerated in February on higher costs for automobile insurance and accommodation during the Vancouver Winter Olympics.
Annual inflation excluding eight volatile items quickened to 2.1 percent in February, the fastest since December 2008, compared with 2 percent in January, Statistics Canada said.
The economy is accelerating out of last year’s recession, with retail sales data today also rising faster than expected, similar to recent reports on growth and manufacturing. The rebound may change how fast Governor Mark Carney raises the central bank’s record low 0.25 percent benchmark interest rate, which he’s promised to keep in place through June unless the inflation outlook changes to support the recovery.
Overall consumer price inflation was also faster than expected, advancing 1.6 percent in February from a year earlier.
Traveler accommodation costs jumped 16 percent in February, Statistics Canada said, while automobile insurance premiums increased 7.9 percent. The year-over-year increase in gasoline prices was 15 percent, slower than January’s 24 percent jump.
On a monthly basis, core consumer prices rose 0.7 percent, the fastest since November 2008, and overall inflation was 0.4 percent.
The central bank’s main goal is keeping the overall annual inflation rate at 2 percent. It focuses on the core measure because that excludes volatile items that can generate short- term swings in inflation.
Canada Inflation Quickens Feb 18, 2010 Bloomberg
Canada’s consumer prices rose in January at the fastest pace in more than a year, bringing the inflation rate closer to the central bank’s target, boosted by higher automobile ownership costs.
Prices rose 1.9 percent in January from a year earlier, the most since November 2008, Statistics Canada said today in Ottawa. The median estimate in a Bloomberg News survey of economists was for a 1.8 percent rise following a 1.3 percent gain in December. The monthly inflation rate in January was 0.3 percent, matching the median forecast.
Accelerating inflation may add pressure on the Bank of Canada to raise interest rates from record lows, economists said. Governor Mark Carney cut the benchmark rate to a record 0.25 percent in April and has pledged to keep it there through June unless the inflation outlook shifts.
Policy makers predict that inflation on a quarterly basis won’t return to their 2 percent target until the third quarter of next year.
Most of the gain came from gasoline prices, which rose 24 percent in January from a year earlier. Vehicle insurance premiums rose 7.7 percent and the price of new cars gained 3.1 percent, the first increase since June 2007, Statistics Canada said.
The so-called core inflation rate, which excludes gasoline and seven other volatile items, rose 2 percent on an annual basis in January, compared with 1.5 percent the previous month, led by the gain in new car prices. On a monthly basis, the core rate was 0.1 percent.
* The data displays the monthly average.