Canada: Annual inflation in September drops to 2.2% vs 2.7% expected

Eren Sengezer FXStreet

"The Consumer Price Index (CPI) rose 2.2% on a year-over-year basis in September, following a 2.8% increase in August," Statistics Canada reported on Friday. This reading fell short of the analysts' expectation of 2.7%. Furthermore, the Bank of Canada's core CPI, which excludes food and energy prices, declined 0.1% on a monthly basis in September to drag the annual rate to 1.5% compared to the market expectation of 1.8%.

Key quotes

Month over month, the CPI decreased 0.4% as transitory pressures from the gasoline, air transportation and travel tours indexes, which boosted the all-items CPI in July and August, eased.
Prices for durable goods rose 0.2% year over year, after increasing 1.1% in August.
On a seasonally adjusted monthly basis, the CPI declined 0.1% in September, following a 0.1% increase in August.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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