Canada Inflation Rate Up to 1.5%


Consumer prices in Canada increased 1.5 percent year-on-year in October of 2016, following a 1.3 percent rise in September and in line with market estimates. Higher transport and shelter prices boosted inflation while food prices declined for the first time since January of 2000.

Year-on-year, transport cost rose 3 percent, following a 2.3 percent gain in September: gasoline prices went up 2.5 percent after declining 3.2 percent and purchase of passenger vehicles rose less (+4.4 percent compared to 5.8 percent) but remained the top upward contributor to the 12-month change in the transportation index.

Shelter prices increased the most since January of 2015 (+1.9 percent), following a 1.7 percent gain in September. The homeowners' replacement cost index was up 4.1 percent and property taxes rose 2.8 percent while the natural gas index was down 3.4 percent.  

Food prices posted their first decline since January of 2000, down 0.7 percent after rising 0.1 percent in September. Prices for food purchased from stores recorded their largest decline since July of 1992, down 2.1 percent after decreasing 0.9 percent. Prices of fresh fruit (-7.4 percent ), meat (-1.7 percent ), dairy products (-2.4 percent ) and fresh vegetables (-3.6 percent ) declined while cost of fish, seafood and other marine products rose. Prices for food purchased from restaurants were up 2.6 percent . 

On a monthly basis, consumer prices went up 0.2 percent after edging up 0.1 percent in September.


Excluding food and energy, consumer prices rose 0.2 percent on the month and 1.7 percent on the year.


Canada Inflation Rate Up to 1.5%


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
11/18/2016 2:05:15 PM