Canada Inflation Rate Up to 1.3% in September


Consumer prices in Canada increased 1.3 percent year-on-year in September of 2016, following a 1.1 percent gain in August but below market expectations of a 1.5 percent rise. Cost of shelter and transportation contributed the most to the rise while food inflation was the lowest since February of 2000.

Year-on-year, transport cost rose 2.3 percent, following a 0.3 percent gain in August. Gasoline prices posted a smaller year-over-year decrease in September (-3.2 percent) than in August (-11.5 percent). The purchase of passenger vehicles index increased 5.8 percent in September, after posting a 5.2 percent gain in August.

Shelter prices went up 1.7 percent, the same as in the previous month. 

The clothing and footwear index rose 0.1 percent, following a 0.4 percent decline in August. This turnaround was partly attributable to increases in the men's clothing index and the women's clothing index. For the fifth consecutive month, shoppers paid less for children's clothing.

Food prices were up 0.1 percent after rising 1.1 percent in August. Prices for food purchased from stores recorded their first year-over-year decline since March 2008, down 0.9 percent. As a result of the decrease in September, food prices in stores returned to a level last recorded in January 2015.

Following gains in the price of some fresh vegetables in the fall and winter of 2015/2016, and subsequent monthly declines in those prices, the fresh vegetables index (-2 percent) was down for the first time since January 2013. On a year-over-year basis, the price of cereal products (-4.9 percent), which include rice, pasta, flour and breakfast cereal, fell for a third consecutive month. The condiments, spices and vinegars index (-5.3 percent) and the dairy products index (-1.1 percent) were down.

Prices for food purchased from restaurants were up 2.5% in the 12 months to September, matching the rise in August.

On a monthly basis, consumer prices increased 0.1 percent, following a 0.2 percent decline in August.

Excluding food and energy, consumer prices rose 0.4 percent on the month and 2 percent on the year.


Canada Inflation Rate Up to 1.3% in September


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
10/21/2016 12:44:22 PM