Canadian Inflation - January 20, 2012
BCREA
ECONOMICS NOW
Canadian
Inflation - January 20, 2012
Canadian
CPI inflation registered 2.3 per cent (year-over-year) in December, a 0.6
point decline from November. The drop in inflation last month was largely due
to slow growth in prices for gasoline, food products, and
automobiles. The Bank of Canada's core inflation measure, which excludes
food and energy prices, rose at a rate of 1.9 per cent in December
from 2.1 per cent in November. Consumer prices in BC were just 1.7 per
cent in December (year-over-year).
Slack in the Canadian economy and moderating global commodity prices are likely
to ensure that both core and total CPI inflation remain close to or below the
Bank of Canada's 2 per cent inflation target over the next 12
months. Without any serious inflationary pressure, the Bank of Canada will
opt to keep the current considerable level of monetary stimulus in place
for the foreseeable future.