Canada August CPI +4.1% vs +3.9% expected

Canadian August 2021 consumer price index data:

• prior 3.7% year on year
  
• CPI MoM +0.2% vs +0.6% last month. Estimate 0.1%.
  
• Excluding gasoline CPI increased 3.2% year on year vs 2.8% prior
  
• Gasoline +32.5% y/y
  
• Full report
  

Core measures (YoY)

• Median 2.6% versus 2.6% last month. Estimate 2.6%
  
• Common 3.3% versus 1.7% last month. Estimate 1.7%
  
• Trimmed 1.8% versus 3.1% last month. Estimate 3.1%

Like everywhere else, durable goods are a main driver of inflation. Here are some y/y numbers on key items:

• Passenger vehicles +7.2%
• Furniture +8.7%
• Household appliances +5.3%

Services inflation has been picking up, which is what you would expect in the reopening. Prices for services rose for the fifth consecutive month and up to 2.7% y/y from 2.6%. Hotels (+19.3%) are a major reason why.

There are enough categories at high levels here to get the BOC worried, with shelter costs set t continue rising for many months.

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September 16, 2021 at 12:30AM
Adam Button
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