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Canada August CPI Rises To 1.4% Y/Y From 1.2% in June>

--Seasonally Adjusted August CPI M/M +0.2%, Matching June
By Courtney Tower 
     OTTAWA (MNI) - Canadian annual inflation rose again in August, by 
two percentage points, as it had done in July, to 1.4% year-over-year 
from 1.2%, while two of the three Bank of Canada measures of core 
inflation also ticked up, Statistics Canada reported Friday. 
     The  rise to 1.4% in annual CPI inflation was just slightly below 
the 1.5% expected by analysts surveyed by MNI. 
     The Bank of Canada now sees, as hoped for, inflation rising for the 
second consecutive month. 
     The Bank of Canada's core readings of inflation included 1.5% for 
the common measure, one notch above 1.4% in July and the highest since  
September 2016. CPI-median registered at 1.7%, the same as in July. 
CPI-trim was at 1.4%, from 1.3% in July. 
     The 1.4% total CPI annual rate was the highest since 1.6% set in 
April this year. The CPI index had begun this year at 2.1% in January 
and at the desired 2.0% in February before dropping through June. 
     Seasonally adjusted, month-over-month, the CPI increased 0.2% in 
August, matching the gain in July. Five of the eight major components 
were up, led by transportation (+0.8%), while recreation, education and 
reading (-0.2%) posted the largest decline. 
     For the overall 12-month unadjusted index, key August features were 
that six of the eight major components rose, led by the transportation 
(+2.8%) and shelter (+1.3%) indexes. The two year-over-year declines 
were in clothing and footwear (-0.4%) and  household operations, 
furnishings and equipment (-0.2%). 
     More specifically, gasoline led the upward contributors to the CPI 
index, with an 8.6% 12-month rise. Homeowners' replacement costs were up 
4.2%, traveller accommodation up 6.3%, air transportation up 6.2%, and 
food purchased at restaurants higher by 2.6%. 
     The main downward contributors to the 12-month CPI were electricity 
(-8.9%), and women's clothing (-1.9%) and other items such as furniture, 
digital computing equipment and devices, and household appliances. 
     For the unadjusted monthly changes in the CPI, the main upward 
contributor was, again, gasoline. Others included homeowners' 
replacement costs, internet access services, jewellery and passenger 
vehicles insurance premiums. Main downward contributors were telephone 
services (-2.8%), fresh fruit and vegetables (-4.3% and -5.0%) along 
with purchases of passenger vehicles (-0.4%) and purchase of 
recreational vehicles and outboard motors (-1.6%). 
     The NSA index for all items excluding energy rose by 1.3% 
year-over-year (with a decline of -0.1% M/M). Energy rose 2.3% 
year-over-year and all items excluding food and energy rose 1.5%. 
     Overall, goods-producing industries CPI was up 0.4% year-over-year 
and services up 2.2%. 
     Consumer price gains accelerated year-over-year in nine of the 10 
provinces while Manitoba registered the same increase as in July. 
     --MNI Ottawa Bureau; email: 
     [TOPICS: MACDS$,M$C$$$] 

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