Inflation remains stubbornly high
More interest rate hikes by the Bank of Canada are likely
By Rob Roach, ATB Economics 19 October 2022 less than a minute
Headline inflation in Canada dipped slightly in September, but was still red hot at 6.9% compared to 7.0% in August. The rate peaked at 8.1% in June.
Core inflation (excluding food and energy) rose slightly, going from 5.3% in August to 5.4% in September.
In Alberta, consumer price growth increased from 6.0% in August to 6.2% in September. Core inflation in the province went from 4.9% to 5.3%.
Food prices in Alberta were up by 9.7% and shelter costs were up by 6.2%.
Although gasoline prices fell in September, they were still 6.7% higher than 12 months earlier.
Despite headline inflation at the national level slowing for the third month in a row, it remains well above the 2% target.
As a result, today’s numbers are unlikely to change the Bank of Canada’s mind regarding the need for additional interest rate hikes aimed at reducing inflation.
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