Canada Inflation Rate Slows to 1.4% in October, Matches Forecasts

Consumer prices in Canada increased 1.4 percent year-on-year in October of 2017, following a 1.6 percent rise in the previous month, and matching market expectations. The decline in annual inflation rate was mainly led by a slowdown in prices of gasoline and shelter. Meanwhile, the BoC's annual core inflation, which excludes volatile items, went up to 0.9 percent compared to 0.8 percent in September.
Statistics Canada |Luisa Carvalho | 11/17/2017 2:19:01 PM
Transportation prices rose 3 percent on a year-over-year basis in October, following a 3.8 percent increase in September. This deceleration was led by gasoline prices, which advanced 6.5 percent after increasing 14.1 percent the previous month in the aftermath of Hurricane Harvey. At the same time, the purchase of passenger vehicles index rose 1.5 percent month-over-month in October, providing the impetus for the largest year-over-year gain in this index since March 2017.

The shelter index rose 1.2 percent after an increase of 1.4 percent in September.

Consumer prices for food were up 1.3 percent, after rising 1.4 percent in the previous month.

The recreation, education and reading index increased 1.5 percent, following a 2.1 percent gain in September. Prices for travel tours contributed the most to this deceleration, increasing 4.4 percent, after a 7.3 percent gain in September. The recreational services index increased 5.2 percent, following a 14.7 percent gain in September. Meanwhile, prices for digital computing equipment and devices (-4.4%) declined at a slower rate on a year-over-year basis in October than in September.

Consumer prices for household operations, furnishings and equipment rose 0.2 percent, after declining year over year for three consecutive months. Prices for telephone services increased 3.9 percent on a monthly basis, leading to a 0.1 percent year-over-year decline in October, following a 3.1 percent decrease in September. Prices for child care services went up 2.6 percent. Additionally, the tools and other household equipment index recorded a smaller year-over-year increase for the month than was seen in September.

The clothing and footwear index went down 1.5 percent in October 2017, after falling 2.3 percent in the prior month.

On a monthly basis, consumer prices edged up 0.1 percent, following a 0.2 percent increase in September.

Canada Inflation Rate Slows to 1.4% in October, Matches Forecasts