Canadian Inflation Turns Positive in January, After the Decline in December

Inflation jumped by 0.6% in Canada in January after coming at 0.2% in December

Written by: Skerdian Meta • Wednesday, February 17, 2021 • 1 min read

• Last updated: Wednesday, February 17, 2021

CPI MoM jumped to 0.6% in Canada last month

Inflation has been weak in Canada despite the increasing Oil prices. It was negative in summer, bu turned positive in October. But it declined again in December, although today’s report is showing a jump in the monthly numbers for January. Although, the CAD is not benefiting from it, as it is following the retreat lower in crude Oil.

Canada January 2021 consumer price index data

January CPI YoY +1.0% vs +0.9% expected
December CPI YoY was +0.7%
CPI MoM +0.6% vs +0.5% expected
December CPI MoM was -0.2%
Full report

Core CPI Measures YoY:

Median CPI +1.4% vs 1.8% expected (prior 1.8%)
Common CPI +1.3% vs 1.4% expected (prior 1.3%)
Trimmed mean CPI +1.8% vs 1.6% expected (prior 1.6%)

It’s a mixed picture in this report with the headline higher but core measures mostly lower than anticipated. The rise was largely due to higher prices for durable goods (+1.7%) and rising gasoline prices (+6.1%) compared with December 2020. Gasoline prices were -3.3% y/y.

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.