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Canada October inflation rate steady at 1.9%

Christian Fernsby |
The annual inflation rate in Canada was at 1.9 percent in October 2019, unchanged from the previous month and matching market expectation.

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Cost of gasoline continued to fall while fruit prices rose further.

Year-on-year, inflation was steady for food (at 3.7 percent), of which fresh fruit prices (7.9 percent compared to 2 percent in September); transportation (at 1.4 percent); and health & personal care (at 1.3 percent).

Meantime, prices increased further for shelter (2.6 percent compared to 2.3 percent); recreation, education and reading (1.3 percent compared to 0.9 percent) and alcoholic beverages, tobacco and recreational cannabis (0.9 percent compared to 0.7 percent).

On the other hand, cost slowed for clothing & footwear (2.3 percent compared to 2.6 percent) and prices of household operations, furnishings and equipment declined (-0.2 percent compared to 0.5 percent).

Regarding special aggregates of the CPI, prices were unchanged for goods (at 1.3 percent), of which durable (1 percent compared to 1.9 percent); semi-durable goods (1.7 percent compared to 2.0 percent) and non-durable goods (1.2 percent compared to 0.9 percent); and services (at 2.2 percent).

Also, cost of energy dropped at a softer pace (-2.9 percent compared to -4.6 percent), as consumers paid 6.7 percent less for gasoline in October following a 10 decline in September, and natural gas prices eased (3.3 percent compared to 5.8 percent), as utilities in Ontario and Quebec revised commodity prices to reflect low current and forecasted natural gas prices in North America.

On a monthly basis, consumer prices went up 0.3 percent, rebounding from a 0.4 percent fall in the prior month and in line with consensus. Main downward pressure came from shelter (-0.2 percent) and recreation, education and reading (-0.3 percent).

BoC's annual core inflation, which excludes volatile items, stood at 1.9 percent in October 2019, its lowest since April, and matching forecasts.

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