Inflation in Canada has accelerated to the fastest pace since 2003, while US prices have risen at the slowest pace in six months.
In August, Canada’s consumer price index rose 0.4% from July, up 4.1% year-on-year. This printed matter shows inflation that has exceeded the Bank of Canada’s 3% cap for the fifth straight month. Soaring housing costs are cited as the reason for the surge.
Core inflation aims to measure price fluctuations in items that exclude unstable commodities such as food and energy. The Bank of Canada’s average priority for core inflation, which is the basis for August, was 2.57%, the highest level since March 2009.
Meanwhile, US inflation fell below consensus, rising 0.3% from July and up 5.3% year-on-year. This number is the smallest step forward in a few months, recording a series of significant rises, suggesting that some of the upward pressure on inflation is beginning to weaken.
Excluding volatile food and energy factors, so-called core inflation rose 0.1% month-on-month, reflecting lower prices for used cars, airfares and car insurance. However, food costs at both grocery stores and restaurants surged again in August. Prices for gasoline, new cars, furniture and rent have also risen.
This data could prove that Fed officials and the Biden administration have peaked high inflation and further rises are temporary.
Both central banks are expected to support a temporary inflationary stance. And while President Biden may see some relief from criticisms of his debt-fueled policies, the impact on Canada may be greater as the country prepares to go to polls. Maybe. This number could be a political headache for Justin Trudeau just a few days before the election.
Mixed measures?Consumer price index rises in Canada, consumer price index falls in the United States
http://www.baystreet.ca/articles/economiccommentary.aspx?id=3347 Mixed measures?Consumer price index rises in Canada, consumer price index falls in the United States