Canada Sept CPI Rises To 1.6% Y/Y,Third Straight Acceleration>

By Courtney Tower 

     OTTAWA (MNI) - Canadian annual inflation rose again in September, 

by the same two percentage points as it had done in August and July, to 

1.6% year-over-year, Statistics Canada reported Friday. 

     The  rise to 1.6% in annual CPI inflation was just slightly below 

the 1.7% expected by analysts surveyed by MNI. On a monthly basis, CPI 

rose 0.2% in September after edging up 0.1% in August. 

     The Bank of Canada now sees, as hoped for, inflation rising for the 

third consecutive month. 

     On a seasonally adjusted monthly basis, the Consumer Price Index 

rose 0.2% in September, matching the increases in August and July. 

     For the third and second quarters this year, CPI rose 1.4% and 

1.3%, respectively, slightly above and slightly below the Bank of 

Canada's projection of 1.3% for the third quarter and 1.4% for the 

second. 

     The Bank of Canada's core readings of inflation included 1.5% for 

the common measure and 1.8% for CPI-median, in both cases the same as in 

the previous month. CPI-trim in September was recorded at 1.5%, versus 

1.4% in August. 

     As a result, the range of core inflation measures ticked up 

1.5%-1.8% from 1.4%-1.8%. 

     The 1.6% total CPI annual rate matched the high for this year set 

in April. The CPI index had begun this year at 2.1% in January and at 

the desired 2.0% in February before dropping until the increases began 

in July. 

     For the overall 12-month unadjusted index, key September features 

were that six of the eight major components rose, led by the 

transportation (+3.8%) and shelter (+1.4%) indexes. The two 

year-over-year declines were in clothing and footwear (-2.3%) and  

household operations, furnishings and equipment (-0.4%). 

     Gasoline led the upward contributors to the CPI index, with a 14.1% 

rise. 

     For the unadjusted monthly changes in the CPI, the main upward 

contributor was, again, gasoline (+5.9%). 

     The NSA index for all items excluding energy rose by 1.3% 

year-over-year (unchanged month-to-month). Energy rose 4.9% 

year-over-year and all items excluding food and energy rose 1.2%. 

     Overall, goods-producing industries CPI was up 0.8% year-over-year 

and services up 2.1%. 

     Seasonally adjusted, month over month, five of the eight major 

components were up, led by transportation (+1.1%), while clothing and 

footwear posted the largest decline (-1.0%). 

     Consumer price gains accelerated year-over-year in seven of the 10 

provinces, versus two declines and British Columbia was flat. 

     --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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