October Inflation Hits Brakes Lightly
Figures released Friday morning by Statistics Canada show this country's rate of inflation came in at 1.4% on a year-over-year basis in October, following a 1.6% rate in September, easing mainly due to to smaller gasoline price increases
The agency said shelter and transportation prices contributed the most to October's rise in its consumer price index, while clothing and footwear prices showed a decline when compared with October 2016.
It also said transportation prices were up by 3% on a year-over-year basis in October, following a 3.8% increase in September. The slowdown was led by gasoline prices, which increased 6.5% year-over-year in October after increasing 14.1% the previous month in the aftermath of Hurricane Harvey.
Consumer prices for household operations, furnishings and equipment rose 0.2% in the 12 months to October after the three previous months all showed declines from the same month last calendar year.
Of the three inflation measures closely watched by the Bank of Canada for the purpose of setting monetary policy, Statistics Canada said the CPI-common reading for October was 1.6%, up from September's 1.5%. The CP-median reading eased to 1.7% from 1.8%, while CPI-trim remained steady at 1.5%.
CPI has remained remained below the Bank of Canada's stated target of 2%, even as the Canadian economy enjoyed a surge earlier this year. However, some market watchers see that situation changing, with inflation expected to pick up very soon.