Inflation in British Columbia was 1.4% in the 12 months to August, according to Statistics Canada data released September 19.
The province had the second-lowest rate of growth in the consumer price index (CPI) in the country, after Prince Edward Island (1.2%).
Nationally, prices grew 2.1% year-over-year. The biggest increases were seen in a 5.7% jump in the price of alcoholic beverages and tobacco products and a 3.0% increase in the price of household operations, furnishings and equipment.
Core CPI, which excludes some of the most volatile components measured by the index such as produce, mortgage interest cost and gasoline, also grew 2.1% year-over-year across the country. This is the fastest growth in this area since April 2012 and represents a jump of 0.5 percentage points from 1.7% a month earlier – much higher than expected.
“The surprisingly big acceleration in core CPI blows the Bank of Canada’s Q3 forecast for a 1.7% average out of the water, with something around 2% more likely,” said BMO senior economist and vice-president Benjamin Reitzes. “The BoC will see one more CPI print before their next policy announcement on October 22, so there’s a chance they could get some reprieve – though I doubt it.
“Given the broad nature of the gains, it might be tough for the Bank to argue the increases are transitory, and a continued upward trend will be difficult to overlook.”
Compared with one month prior, B.C. prices remained the same, which is in line with the national average over the same period.
No provinces saw a drop in CPI year-over-year.
@EmmaHampelBIV
