Canada: Inflation eases in October from the prior month
Latest reading: Consumer prices were up 2.2% in annual terms in October, following a 2.4% rise in the prior month and within the Central Bank’s 1.0–3.0% inflation target range.
Relative to the previous month’s data, there were milder price pressures for housing (+2.5% on a year-on-year basis vs +2.6% in September), transportation (+0.8% vs +1.3% in September), food (+3.5% vs +3.9% in September) and clothing and footwear (+0.3% vs +1.2% in September). In contrast, price pressures were higher for recreation and culture in October (+2.0% vs +1.6% in September).
Meanwhile, core consumer prices increased 2.9% in annual terms in October, following a 2.8% rise in the prior month.
Lastly, consumer prices rose 0.24% in October on a month-on-month basis, following a 0.06% increase in the previous month.
Panelist insight: On the impact of Canadian tariffs on inflation, Nomura analysts said:
“There were few signs of a broad-based acceleration in tariff related components. Prices for new vehicles and home entertainment equipment picked up, while clothing and household furniture prices fell on an annual basis. The impact from tariffs has been limited so far, and we expect passthrough to remain limited since Canada has dropped the majority of its retaliatory tariffs on US imports.”