Canada Annual Inflation Rate Advances 1.6% in April
20 Mai, 2017, 03:24 | Author: Claudine Rigal
Mirroring the national trend, Ottawa's inflation rate also stood at 1.6 per cent for the second straight month. The Bank of Canada sets rate policy to achieve and maintain 2% inflation. Five others saw their inflation rate decline, whole three experienced an increase in inflationary pressures.
Aside from food, clothing and footwear was the only sector to see prices drop in the past year, by two per cent.
The annual inflation rate held at 1.6 percent, just missing economists' forecasts of an uptick to 1.7 percent, while the measures of core inflation the Bank of Canada set past year remained muted. Stripping out the effect of price changes, volumes climbed 1.2 per cent.
The cost of kids' clothing was 6.2 per cent lower and women's clothes cost 2.8 per cent less in April compared with a year earlier. The indicators are created to strip away more volatile components of the report, and are closely scrutinized by the Bank of Canada.
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The CPI (Consumer Price Index) common, which the central bank says is the best gauge of the economy's underperformance, held at 1.3 percent.
Statistics Canada is also releasing retail trade numbers that show total sales in March delivered a larger than expected rebound to increase by 0.7 per cent following a month-over-month contraction of 0.4 per cent in February.
Total retail trade in March was almost $48.3 billion thanks to stronger sales at motor vehicle and parts dealers, which was mostly due to an increase in new auto purchases.
The gain in retail sales suggests that the economy is continuing to be supported by consumers, said Jimmy Jean, senior economist at Desjardins.
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