Canadian inflation is accelerating in September 2017

October 21, 2017 10:32 amComments Off on Canadian inflation is accelerating in September 2017Views: 179

Canadian inflationThe Canadian inflation is accelerating at a slower than expected rate in September 2017, according to the data from the national statistics office. The consumer prices rose by 0.2% on a monthly basis, after the previous month’s increase was 0.1% and against estimates for growth of 0.3%.

On an annual basis, Canadian inflation is 1.6%, which corresponds to expectations and is more than the 1.4% CPI growth in August. Beyond the prices of energy sources, however, the report shows that inflationary pressures remain insufficient in most sectors.

The core inflation, excluding food and energy, is boosted to 0.2% on a monthly basis. On an annual basis, underlying inflation slowed from 0.9% in August to 0.8% in September.

Next week, on Wednesday, the Canadian Central Bank is expected to meet on monetary policy. While inflation remains the main target of the central bank, it justifies the expected rise in interest rates, referring to the rapid depletion of excess capacity in the economy, and arguing that inflation-supporting forces are temporary.

On Friday, the retail sales figures were also released, shrinking more than expected. In September, retail sales in Canada dropped 0.3% on a monthly basis. The previous month was 0.4% growth, and expectations were for acceleration to 0.5%.

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