Canada Inflation Rate Back to Central Bank’s Target


Canadian annual inflation rate slowed to 2 percent in September from 2.1 percent in August. Higher prices for shelter and food contributed the most to the rise in the CPI, while the transportation index posted the smallest increase.

Shelter costs rose 2.7% in the 12 months to September, following a 2.8 percent gain in August, driven by a 16.2% increase in natural gas prices. 

Consumers also paid more for homeowners' home and mortgage insurance, property taxes and electricity in September compared with the same month in 2013. Conversely, the mortgage interest cost index declined year over year.

Food prices were up 2.7% on a year-over-year basis in September. This followed a 2.2% increase in August. Prices for food purchased from stores rose 3.0% year over year in September, after advancing 2.3% the previous month. This faster rise was led by meat prices, which increased 11.5% in the 12 months to September, following a 9.3% gain in August. Food purchased from restaurants cost 2.3% more in September compared with the same month a year earlier.

The transportation index increased 0.5% in the 12 months to September, after advancing 1.2% in August. Prices for the purchase of passenger vehicles recorded a 0.5% year-over-year rise in September, following a 2.9% increase the previous month. Conversely, consumers paid 0.5% less for gasoline on a year-over-year basis in September.

Tuition fees, which are part of the recreation, education and reading major component, rose 3.2% in September compared with the same month a year earlier. Tuition fees increased the most for Ontario residents (+4.0%) and least for residents of Newfoundland and Labrador (+0.9%).

Annual core inflation rate stood at 2.1% in the 12 months to September, matching the increase in August.

Canada Inflation Rate Back to Central Bank’s Target


Statistics Canada | Ricardo Martins | ricardo.martins@tradingeconomics.com
10/17/2014 2:00:49 PM