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Canadian Consumer Price Inflation


Blog by Century 21 Amos Realty | May 18th, 2012


BCREA ECONOMICS NOW
Canadian Consumer Price Inflation - May 18, 2012
Canadian CPI inflation registered 2.0 per cent (year-over-year) in April, a 0.1 point increase from March inflation of 1.9 per cent. The rise in consumer prices was led by transportation costs, including a 3.3 per cent rise in gasoline prices. In fact, Statistics Canada's gasoline Index reached a 4 year high in April. The Bank of Canada's core inflation measure, which excludes food and energy prices, rose 2.1 per cent in April, up from 1.9 per cent in March. Consumer prices in BC were 1.6 per cent higher in April (year-over-year), matching the increase in March. 
Today's CPI report, in combination with very strong Canadian employment growth in March and April, lends further support to the Bank of Canada's case for raising interest rates this fall. We anticipate at least one 25 basis point increase in the Bank of Canada's overnight rate between October and December this year. The one factor potentially delaying a rise in rates could be an increasingly likely Greek exit from the European Monetary Union. Such an event may roil financial markets enough to put BoC rate hikes off the table.
For more information, please contact:  
Cameron Muir Brendon Ogmundson
Chief Economist Economist
Direct: 604.742.2780 Direct: 604.742.2796
Mobile: 778.229.1884 Mobile: 604.505.6793
Email: cmuir@bcrea.bc.ca
Email: bogmundson@bcrea.bc.ca
BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe). 
Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information. 
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Just received todays consumer price inflation update. Please see below:

BCREA ECONOMICS NOWCanadian Consumer Price Inflation - May 18, 2012Canadian CPI inflation registered 2.0 per cent (year-over-year) in April, a 0.1 point increase from March inflation of 1.9 per cent. The rise in consumer prices was led by transportation costs, including a 3.3 per cent rise in gasoline prices. In fact, Statistics Canada's gasoline Index reached a 4 year high in April. The Bank of Canada's core inflation measure, which excludes food and energy prices, rose 2.1 per cent in April, up from 1.9 per cent in March. Consumer prices in BC were 1.6 per cent higher in April (year-over-year), matching the increase in March. 

Today's CPI report, in combination with very strong Canadian employment growth in March and April, lends further support to the Bank of Canada's case for raising interest rates this fall. We anticipate at least one 25 basis point increase in the Bank of Canada's overnight rate between October and December this year. The one factor potentially delaying a rise in rates could be an increasingly likely Greek exit from the European Monetary Union. Such an event may roil financial markets enough to put BoC rate hikes off the table.For more information, please contact:  Cameron Muir Brendon OgmundsonChief Economist

Cameron Muir

Chief Economist

Direct: 604.742.2780

Mobile: 778.229.1884

Email: cmuir@bcrea.bc.ca

Brendon Ogmundson

Economist

Direct: 604.742.2796

Mobile: 604.505.6793

Email: bogmundson@bcrea.bc.ca

BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe). Real estate boards, real estate associations and REALTORS® may reprint this content, provided that credit is given to BCREA by including the following statement: “Copyright British Columbia Real Estate Association. Reprinted with permission.” BCREA makes no guarantees as to the accuracy or completeness of this information.