Canada Inflation Rate Down to 0.7% in October


The Consumer Price Index rose 0.7 percent in the 12 months to October, following a 1.1 percent increase in September. This slower rise was mainly attributable to a year-over-year decline in gasoline prices.

Gasoline prices fell 4.3 percent in October compared with the same month a year earlier. This followed a 0.3 percent decrease in the 12 months to September. Lower gasoline prices were posted in all provinces in October, with Saskatchewan (-8.6 percent) recording the largest year-over-year decrease and Ontario (-1.8 percent) the smallest.

Shelter costs rose 1.3 percent in the 12 months to October, following a 1.4 percent gain in September. The shelter index was led by a 3.2 percent year-over-year increase in property taxes. Consumers also paid more for rent, while mortgage interest cost declined 2.6 percent.

Food prices rose 0.9 percent in October compared with the same month last year, after posting a 1.2 percent gain in September. This slower increase was largely attributable to smaller year-over-year price gains for food purchased from stores, notably fresh vegetables and bakery products. Consumers paid 1.4 percent more for food purchased from restaurants in the 12 months to October, after paying 1.5 percent more in September.

The transportation index decreased 0.1 percent on a year-over-year basis in October, following a 0.8 percent increase in September. While consumers paid less for gasoline in the 12 months to October, they paid 1.7 percent more for the purchase of passenger vehicles, after paying 1.4 percent more in September.

Prices for clothing and footwear declined 0.7 percent in the 12 months to October, following a 0.4 percent increase in September. This decline was mainly attributable to a smaller monthly price gain in October compared with the same month last year.

On a monthly basis, prices dropped 0.2 percent in October. Cost of gasoline fell 5.1 percent. Since the beginning of 2013, there have been an equal number of monthly increases and decreases in the gasoline price index, resulting in an average year-over-year growth rate of 0.3 percent over these 10 months.

Canada Inflation Rate Down to 0.7% in October


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
11/22/2013 1:38:54 PM