Inflation Rises to 0.5% in September But Price Pressures Remain Subdued

It appears that inflation has finally hit Canada, but price pressures still remain restrained as the economy attempts to climb out of the pandemic-induced recession.

According to the latest Statistics Canada data, annual inflation rose to 0.5% in September, after remaining constrained at 0.1% throughout July and August. Although inflation increased last month, it still remains significantly lower than usual levels as businesses and companies continue to keep prices depressed. This in turn has signalled to the Bank of Canada to maintain interest rates at record-low levels in order to stimulate growth.

In the meantime, the average of core inflation indicators, which provide a more thorough picture of underlying price pressures, increased from 1.7% in August to a mere 1.73% in September. Previously, economists had anticipated that core inflation readings would remain the same at 1.7%, which is below the central bank’s inflation target of 2%.

On a month-over-month basis, prices declined by 0.1%, but excluding gasoline, consumer prices increased by 1%. The latest Statistics Canada report suggests that gathering restrictions and social distancing rules imposed on businesses are preventing prices from spiking. However, the trend is unlikely to reverse anytime soon given the growing concerns of a second COVID-19 wave mounting across several major Canadian cities.


Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Another Sign of Inflation: US PCE Index Jumps By More Than Expected… Again

US consumers have likely felt significant pressure on their pocketbooks over the past several months,...

Sunday, May 30, 2021, 11:15:00 AM

Investment In Canada’s Residential Construction Soars To Record-High

Following three consecutive months of declines, investment in Canada’s building construction rose by 1.5% in...

Tuesday, February 9, 2021, 02:51:00 PM

Tiff Macklem Is Ready to Hike Rates Again If Inflation Fails to Decline

Bank of Canada Governor Tiff Macklem is caught between a rock and a hard place...

Thursday, February 16, 2023, 01:52:55 PM

Stellantis Sounds Alarm Over Structural Inflationary Pressures

Major automaker Stellantis NV has joined the growing list of companies sounding the alarm over...

Wednesday, July 21, 2021, 12:19:54 PM

US CPI Jumps by Most Since 2009 as Energy Prices Soar

As long as you didn’t buy food or gasoline, use electricity, or pay for shelter,...

Tuesday, April 13, 2021, 12:26:00 PM