The Canadian consumer price inflation remained unchanged in October. On a year-on-year basis, the headline inflation came in at 1.9 percent, the same as in September’s, and consistent with expectations. Sequentially, the consumer price index rose 0.3 percent, following a 0.1 percent fall seen in the prior month.
All subcategories recorded either a rise or flat sequentially, led by recreation and education prices, shelter prices and transportation in October. Clothing prices came in flat on the month, as were health and personal care.
One of the Bank of Canada’s core measures rose a bit in October. CPI-median rose to 2.2 percent. CPI-common and CPI-trim came in the same at 1.9 percent and 2.1 percent, respectively.
Today’s was a bland report. Core inflation as well anchored at around the 2 percent mark and with few idiosyncratic factors to report, the headline is just a hair below. Base effects would likely lead the headline number to push modestly higher toward the end of the year, but nothing to raise any alarm bells, noted TD Economics in a research report.
“We expect the central bank to ere on the side of supporting economic growth and cut the overnight rate in the first half of 2020”, added TD Economics.
