Canadian Chamber of Commerce - Economic Update: Inflation Report

The recent acceleration in inflation reversed course in October. Headline inflation, as measured by the All-items Consumer Price Index (CPI), rose 2.9% year-over-year, following the 3.2% increase in September.

Prices increased in all eight major components tracked by Statistics Canada. The largest increase occurred in the transportation category (+6.7% in the 12 months to October) and food (+4.3% year-over-year).

Consumer prices in October increased at a slower year-over-year rate in every province except for Alberta. New Brunswick has the highest inflation rate in the country (+4.0% in the 12 months to October) followed by Nova Scotia (3.9%). Inflation pressures remain more modest in British Columbia (+2.3%) and Ontario (2.7%). 　

The Bank of Canada's closely watched core measure of inflation (which excludes the　eight most volatile components of the CPI, as well as the effect of changes in indirect taxes)　advanced 2.1% in the 12 months to October, a modest deceleration from the 2.2% pace set in September. The Bank of Canada is forecasting core inflation to stand at 2.0% for the fourth quarter as a whole, so October’s result is in the ballpark. The underlying rate of inflation is expected to moderate in 2012 in tandem with weaker economic growth.

This e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Chief Economist
(416) 868-6415 ext. 222

hddc.on.ca/images/stories/Anti-Counterfeiting Trade Agrement.pdf