Canadians paid 0.5% more for goods and services in September than a year earlier, according to government data released on Wednesday, October 21.
The acceleration of inflation from 0.1% the previous month, Statistics Canada said in a statement, was mostly due to higher costs of transportation, recreation, education and reading material, and shelter.
The figure was in line with forecasts.
“Canadian consumer prices remained cool heading into the country’s cold-weather months, but were just warm enough to lift the annual rate of inflation,” commented CIBC analyst Royce Mendes.
He added that with inflation still “close to zero,” the Bank of Canada would likely maintain its current record-low key lending rate of 0.25% next week.
The government statistical agency noted lower prices for gasoline and other fuels, while food prices increased.
Strong demand for housing, along with higher building material costs and low inventory of homes for sale, pushed up prices of new homes, while mortgage interest costs rose less rapidly as interest rates remained at record lows.
Passenger vehicle prices also rose, while airfares fell less in September than the previous month as tourism remained weak.
Clothing and footwear prices also fell, with lower demand for back-to-school clothing as many students turned to online learning. – Rappler.com
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