ZCZC
BCN-25
CANADA-ECONOMY-INFLATION
Canadian inflation slows to 2.2 percent in September
OTTAWA, Oct. 20, 2018 (BSS/Xinhua) – The pace of inflation in Canada
slowed more than expected in September as the price rise of gasoline
continued to ease, according to Statistics Canada on Friday.
The consumer price index in September rose 2.2 percent from that a year
ago, in comparison with a year-on-year increase of 2.8 percent in August.
The inflation report came ahead of the Bank of Canada’s rate decision next
week when it will update its forecast for the economy in its monetary policy
report.
The Canadian central bank is expected to raise its key interest rate
target, which sits at 1.5 percent, by a quarter of a percentage point.
Statistics Canada said prices were up in all eight major components for
the 12 months to September.
The transportation index, which includes gasoline, was up 3.9 percent in
September compared with a 7.2-percent move in August as gasoline prices last
month went up 12 percent compared with a 19.9-percent increase in August.
However, the transportation group remained the largest contributor to the
overall year-on-year increase in the index. Food prices were up 1.8 percent
while shelter costs rose 2.5 percent. Alcoholic beverages and tobacco
products were up 4.4 percent.
BSS/XINHUA/HR/1300