Canadian inflation remained subdued in September as the Consumer Price Index (CPI), which measures the rate of inflation in Canada, rose just 1.3 per year-over-year. The Bank of Canada's core measure of inflation, which excludes volatile components like food and gasoline, rose 1.8 per cent for a second consecutive month. In BC, provincial consumer price inflation was 1.8 per cent in the 12 months to September.
Decelerating inflation and a slowing economy had the Bank of Canada discussing, but ultimately deciding against, a rate cut earlier this week. However, it is unlikely that the Bank will act to offset mortgage restrictions introduced by the Federal government unless the outlook for growth inflation becomes dramatically weaker.
Copyright British Columbia Real Estate Association. Reprinted with permission.