Canada’s annual inflation-rate marches to 18-year peak, set to keep rising

by   |  VIEW 609

Canada’s annual inflation-rate marches to 18-year peak, set to keep rising

On Wednesday, data from Statistics Canada had unenveloped that the annual inflation rate in Canada, the world’s 10th-largest economy by nominal GDP (Gross Domestic Product), had space-dived to a fresh 18-year peak last month, mostly boosted up by an unexpected uptick in petroleum alongside housing prices, while analysts had forecasted further feather up in inflation indicators with BoC (Bank of Canada) remained utterly reluctant to hold forth towards a hawkish monetary policy.

Meanwhile, citing a global-scale supply chain disruption, in particular a pernicious logjam in Vancouver, a vice-President of Capital market economics at Scotiabank said, “There is more heat ahead, particularly with the Vancouver port disruptions.

And I think we are going to get inflation crossing well above 5% by the end of the year”. Followed by the release of latest Statistics Canada data that had underscored the North American economy’s core inflation indicator, CPI (Consumer Prices Index), had soared to an 18-year peak last month, Canadian Dollar tumbled 0.36 per cent against its American counterpart to $1.2605 on late-afternoon US trading hours, while the commodity-linked looney fell 0.52 per cent against euro and 0.82 per cent against British Pound to $1.1580 and $1.7005 respectively.

Canada’s annual inflation spikes to 18-year peak

According to Statistics Canada data released earlier in the day, Canada’s core inflation indicator, Consumer Prices Index, jumped to 4.7 per cent over past twelve months through October, up from a reading of 4.4 per cent in September, marking off a seventh successive month of inflation-surge when headline indicators had been well above the Bank of Canada’s (BoC) target range between 1.0 per cent to 3.0 per cent.

Nonetheless, on a monthly basis, Canada’s consumer prices index remained unchanged at 1.8 per cent. Meanwhile, addressing to a dovish policy stance from BoC, a chief Canada strategist at TD Securities, Andrew Kelvin said, “This doesn't change anything for the Bank of Canada. This is in line with their forecast”.