Canada’s annual inflation rate held at 1.0 percent in October, remaining at the lower end of the central bank’s target range as it was held down by cheaper energy prices, data from Statistics Canada show.
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Prices were up in seven of the eight major components on a year-over-year basis in October, with the rise in the CPI led by higher prices for food.
The federal agency said food prices rose by 4.1 per cent from a year ago. Food purchased at stores was more expensive than a year ago, including fresh fruit and dairy products.
The BOJ said on Friday it will start publishing this month the new CPI, as well as other indicators such as one showing the ratio of goods seeing prices rise versus those that are falling, on a regular basis each month.
“The performance of the government’s core CPI (in tracking broad price trends) seems to be deteriorating, although this is probably because of the temporary effect of large swings in crude oil prices”, the BOJ said in a research paper.
Canadian inflation was up 1.0% year-on-year in October, a repeat of the growth seen in September. Saskatchewan and Alberta followed since they both posted a 1.4% increase.
Meanwhile, the consumer price index in Prince Edward Island posted its 11th consecutive year-over-year decline.
Nova Scotia’s CPI increased 0.3% in the 12 months to October, after posting no change in September.
Sales were down in eight of 11 subsectors as retail sales in volume terms edged up 0.1%. Prices for footwear in the province declined 2.4% in the 12 months to October, after increasing 5.5% the previous month.
Canadian households are making a bland contribution to an economic recovery battered by slumping crude oil prices, keeping the central bank stuck as the USA moves toward raising interest rates. So-called core inflation, which excludes volatile components such as food and energy prices, also met expectations, rising 2%.
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Offsetting those increases was the transportation index, which fell 3.2% compared to a year ago.
