3 weeks ago
Economic Indicators

Canadian Annual Inflation 1.4% in January

Investing.com - The overall rate of inflation in Canada fell in January, data on Wednesday showed, casting doubt on whether

Investing.com - The overall rate of inflation in Canada fell in January, data on Wednesday showed, casting doubt on whether or not the Bank of Canada will follow the Federal Reserve in keeping interest rates unchanged.

The consumer price index rose 1.4% last month, compared with the same month a year earlier. Prices rose by 0.1% from a month earlier.

Economists had expected annual inflation to rise by 1.5% and monthly inflation to rise by 0.2%. Core inflation, which excludes gasoline, was up 1.5% from a year earlier and rose by 0.3% from the previous month.

The Bank of Canada aims to keep inflation at 2%, the midpoint of a target range of 1% to 3% over the medium term.

Stephen Poloz, governor of the central bank, said last week that it was uncertain when the bank would raise the benchmark rate and that it would scrutinize incoming data in light of domestic headwinds. The bank is especially concerned about the housing market, business investment levels and global trade uncertainty.

"Given these uncertainties, we have kept interest rates unchanged at 1.75% since last October," Poloz said last week. "We will remain decidedly data-dependent as the domestic and international situations evolve."

The bank’s next interest rate announcement is on March 6.