Gasoline prices fell 10.7% in September on a year-over-year basis. Air transportation prices fell less than usual in September, as traditional travel patterns continued to be disrupted by the COVID-19 pandemic.
“On the face it’s not a bad batch of data,” said Andrew Kelvin, chief Canada
strategist at TD Securities. “That being said, headline inflation
at +0.5% year-over-year, that is a very low level of inflation.
It suggests monetary policy will need to remain accommodating for a long period of time.”
Bank of Canada
Governor Tiff Macklem said earlier this month that bold policy actions taken in response to the coronavirus pandemic had been needed but will make the economy
more vulnerable to economic shocks down the road.
The three core measures of inflation were little changed. The common measure, which the Bank of Canada says is the best gauge of the economy’s underperformance, remained at 1.5%.
Canadian retail sales, meanwhile, rose by 0.4% in August from July, missing analyst expectations of a gain of 1.1%. Statscan’s preliminary estimate for September suggested the measure would be flat for that month.
“Unfortunately retail sales were disappointing ... the initial flash for September is also sluggish. That probably overshadows the CPI,” said Doug Porter, chief economist at BMO Capital Markets.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.