MNI: 5 Things We Learned From Canadian CPI>

     OTTAWA (MNI) - The following are the key points from the monthly 

data on Canadian Consumer Price Index released Friday by Statistics 

Canada: 

     - Total NSA CPI rose 0.1% month-to-month and 1.4% year-over-year, 

as expected by analysts in a MNI survey. 

     - The 1.4% year-over-year gain was a slowdown from September's 1.6% 

increase, but should not surprise the Bank of Canada, which expects 

fourth quarter CPI to average 1.4% and not reach the 2% target before 

mid-2018. 

     - The range of core measures of inflation used as an operational 

guideline ticked down to 1.5%-1.7% in October from 1.5%-1.8% in 

September. CPI-common went up to 1.6% from 1.5%, CPI-median edged down 

to 1.7% from 1.8%, and CPI-trim was stable at 1.5%. 

     - Gas prices (-3.2% month-to-month) were a key downward 

contributor. Excluding gasoline, CPI was up 0.2%. Gas price gains also 

slowed year-over-year to 6.5% from 14.1% in September. In fact, 

excluding gasoline, CPI picked up to 1.3% year-over-year from 1.1% in 

September. Excluding food and energy, CPI rose 0.3% month-to-month and 

1.4% year-over-year. 

     - Overall 5 of the 8 major components were up on the month, while 

food (-0.5%), recreation, education and reading (-1.8%), and alcoholic 

beverages and tobacco (-0.1%) prices contracted. Seven major components 

were up year-over-year, with shelter (+1.2%) and transportation (+3.0%) 

being the two largest contributors to the increase, while clothing and 

footwear was down 1.5%. 

     - On a seasonally adjusted basis, total CPI rose 0.2% in October, 

the same monthly pace as September. Excluding food and energy, CPI was 

also up 0.2% after being flat in September. 

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

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