Canada inflation hits 10-month high on gasoline

[mserve id=”Central_Bank_BOC.jpg” align=”left” width=”400″ caption=”Bank of Canada” alt=”Central Bank of Canada BOC” title=”Bank of Canada”]

Higher gasoline prices pushed Canada’s annual inflation rate to a 10-month high in December, but the news is unlikely to knock the Bank of Canada off track in its pledge to hold interest rates steady for some time.

The consumer price index slipped 0.3 percent in December from November, Statistics Canada said on Wednesday. But 12-month inflation was 1.3 percent, the highest since the 1.4 percent rate of February 2009, due largely to the base effect of a steep decline in gasoline prices in December 2008. In November, annual inflation was 1.0 percent.

Still, the data was below market expectations and inflation was in the lower end of the Bank of Canada’s target range of 1 to 3 percent.

Source: Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza