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.
For more information, please contact:
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Cameron Muir |
Brendon Ogmundson |
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Chief Economist |
Economist |
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Direct: 604.742.2780 |
Direct: 604.742.2796 |
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Mobile: 778.229.1884 |
Mobile: 604.505.6793 |
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Email: cmuir@bcrea.bc.ca |
Email: bogmundson@bcrea.bc.ca |
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