Squamish Real Estate - Economics
Canadian Inflation - October 21, 2011
Canadian CPI inflation increased 3.2 per cent in September due to higher prices for gasoline and food which increased 22.7 per cent and 4.3 per cent on a year over year basis. The Bank of Canada's core inflation measure, which excludes food and energy prices, rose at a rate of 2.2 per cent, the largest year-over-year gain since December 2008. Consumer prices in BC rose 2.4 per cent in September (year-over-year) following a 2.1 per cent increase in August.
Higher than expected core inflation in September is not likely to change the Bank of Canada's stance on monetary policy. Risks in the global economy are still strongly tilted to the downside and should keep the Bank sidelined for an extended period. We will get a better idea of what the Bank is thinking on inflation and the economy after the next interest rate decision on Tuesday, October 25.
Copyright British Columbia Real Estate Association. Reprinted with permission.
