Jeffrey Qián 錢 曄 // 778-238-2014 // info@jeffreyqian.com

Canadian Inflation (April 2021)

Canadian inflation, as measured by the Consumer Price Index (CPI), rose to a ten-year high of 3.4% year-over-year in April, up from 2.2% in March.  Much of the increase in inflation was the result of base-year effects as prices posted a steep decline during April of last year during the first few months of the pandemic-induced shutdown.  For example, gasoline prices were 62.5% higher in April 2021 than in April 2020.  On a seasonally adjusted month-over-month basis, the CPI was up 0.6% in April. In BC, consumer prices were up 0.2% month-over-month and up 3% compared to April 2020.

While inflation is currently running higher than the Bank of Canada's 2 per cent target, much of the increase looks to be temporary and should fade as base-year effects become less significant in coming months.  Measures of core inflation, which strip out more volatile prices, are also up slightly. The Bank of Canada's three preferred measures of core inflation were trending at  2.1% or 0.2 points above inflation in March.  How inflation evolves over the next 3 to 6 months will be very important for the  stance of monetary policy over the next year.  If higher inflation is not just a temporary phenomenon but is being driven by an over-stimulated economy, than we could see the Bank of Canada act on interest rates prior to 2023.  However, if the uptick in inflation starts to fade in coming months, we expect the Bank will stay its current course.


Comments:
No comments

Post Your Comment:

* indicates required fields.
Your Name: *
Please note, your email will not be shown publicly
Your Email (will not be published): *
Comment: *
Please type the text as it appears above:
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.