BCREA Economics Now

Canadian Consumer Price Inflation - April 20, 2012

Canadian CPI inflation registered 1.9 per cent (year-over-year) in March, a 0.7 point decline from February inflation of 2.7 per cent. The rise in consumer prices was slowed by more moderate growth in food and energy prices in March. The Bank of Canada's core inflation measure, which excludes food and energy prices, rose 1.9 per cent in March, down from 2.3 per cent in February. Consumer prices in BC were 1.6 per cent higher in March (year-over-year), down slightly from 1.7 per cent in February. 

The Bank of Canada made sure to emphasize the firmness of inflation thus far in 2012 in its interest rate decision early in the week. Today's CPI report confirms that core inflation, though lower this month, is still anchored very close to the Bank's target of 2 per cent. Stronger than expected economic growth in the first half of 2012, and better outcomes in the Canadian labour market, may put upward pressure on core prices which will further buttress the Bank's case for raising interest rates later this year.

For more information, please contact:

Cameron MuirBrendon
Chief Economist
Direct: 604.742.2780
Mobile: 778.229.1884
Email: cmuir@bcrea.bc.ca

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