Connect to share and comment

Inflation climbs to 1.5 per cent as economists look for prices to keep rising

OTTAWA - A big jump in energy costs and cigarette prices helped push up Canada's inflation rate to 1.5 per cent last month, matching the highest level in the annualized consumer price index in almost two years. The increase, while significant, was mostly in line with expectations of analysts, who had calculated that the observed strengthening of oil and natural gas prices last month would play a dominant role in the report Thursday.

G20 should strengthen recovery to deal with disinflation: Canada

OTTAWA (Reuters) - Canada believes that strengthening the global recovery is a key way to deal with risk of too low inflation in Europe and elsewhere, a senior government finance official said on Wednesday ahead of G20 meetings in Washington. Low inflation globally and particularly in Europe reflects the weak external economic environment facing Canada, and Canada will look for what the G20, the Group of 20 leading economies, will do to strengthening the global economy, the official told reporters on condition of anonymity.

Bank of Canada keeps eye on low inflation, but no change in key interest rate

OTTAWA - Canada's central bank raised concerns Wednesday about the country's persistently low inflation rate, a trend that the average consumer may welcome, but could lead to bigger problems. While it sees improvements in the domestic economy, the Bank of Canada said inflation is now expected to be lower than it had previously projected — in part because of competition among retailers. The concern came as the Bank of Canada kept its key interest rate at one per cent, where it has been since September 2010.

No move expected by Bank of Canada on interest rates, but inflation still a worry

OTTAWA - Economists aren't expecting the Bank of Canada to make any sudden moves on interest rates Wednesday or change its neutral stance about future changes, but they'll be listening closely to what the central bank has to say about weak inflation, which remains below the current trendsetting interest rate of one per cent. But it may take a doctorate in English to parse the hidden meanings in what's expected to be a very carefully worded text, said Benjamin Tal, deputy chief economist of CIBC World Markets.

No move expected by Bank of Canada on interest rates, but inflation still a worry

OTTAWA - Economists aren't expecting the Bank of Canada to make any sudden moves on interest rates Wednesday or change its neutral stance about future changes, but they'll be listening closely to what the central bank has to say about weak inflation, which remains below the current trendsetting interest rate of one per cent. But it may take a doctorate in English to parse the hidden meanings in what's expected to be a very carefully worded text, said Benjamin Tal, deputy chief economist of CIBC World Markets.

UK inflation rate falls to 4-year low in November after drops in food and utility prices

LONDON - Official figures show that inflation in Britain fell to a 4-year low in November, thanks in part to decreases in the prices of food, gas and electricity. The Office of National Statistics reported Tuesday that inflation dropped to 2.1 per cent in the year to November from 2.2 per cent in October.

Analysis: Euro zone October industrial output surprises with sharp decline

By Martin Santa BRUSSELS (Reuters) - Euro zone industrial output defied market expectations of a small month-on-month rise and fell sharply in October, in a fresh warning about the fragility of the bloc's economic recovery. The economic rebound of the 9.5 trillion euro economy almost came to a halt in the third quarter and the outlook remains clouded because of record high unemployment, weak consumer and business confidence.

Slovak inflation near 4-year low: official data

Inflation in eurozone member Slovakia tumbled to near a 4-year low of 0.5 percent in November from 0.6 percent in October, official data showed Thursday. It is the sixth monthly decline in a row, mirroring the situation elsewhere in the eurozone where inflation stayed low at 0.9 percent in November. "The eurozone is not facing any strong deflationary pressures and the European Central Bank does not see deflation ahead," ECB governing council member Jozef Makuch said earlier this week.

Hungarian inflation stable at 40-year low 0.9%: official data

Hungary's 12-month-inflation remained at a 40-year low of 0.9 percent for the second month running, official data showed on Wednesday. The national statistics office KSH said that the low rate in November was mainly a result of government-enforced household utility price cuts which offset rising food, alcohol and tobacco prices. The central bank has cut its key interest rate repeatedly over the last year, and in recent months concern has arisen in several countries in the emerging central Europe region as well as in the eurozone about the strength of disinflation.

Czech inflation rises, but deflation still looms

Czech inflation accelerated on an annual basis for the first time for four months in November, official data showed on Monday, but a monthly price drop suggested a risk of deflation. Troubled by low inflation, the central bank intervened on the forex market last month to weaken the koruna currency and keep the rate at about 27 koruna to the euro. The move was intended to give the economy an export boost and push inflation closer to the central bank's target of two percent by making imported goods more expensive.
Syndicate content