Along with headline CPI inflation surprising a little lower (and core cooling but as expected), dispersion metrics also showed further disinflationary progress in August.
That’s from an already good level in July, with the BoC noting with its decision earlier this month that “the share of components of the consumer price index growing above 3% is roughly at its historical norm”.
By our calculations, the share of 185 items across the entire CPI basket growing in excess of 3% Y/Y fell further from 28% to 26%, a new recent low. 2019 av 33%, long-term pre-pandemic average of 28%.
The goods share fell to 21% (2019 av 34%, long-term 26%) whilst services is of more note as it continued to trend lower, falling from 41% to 37%.
The latter is still above 31% seen pre-pandemic but has seen greater convergence than its US counterpart.
CANADA DATA: Further Disinflationary Progress In CPI Breadth
Last updated at:Sep-17 13:05By: Chris Harrison
Canada
Along with headline CPI inflation surprising a little lower (and core cooling but as expected), dispersion metrics also showed further disinflationary progress in August.
That’s from an already good level in July, with the BoC noting with its decision earlier this month that “the share of components of the consumer price index growing above 3% is roughly at its historical norm”.
By our calculations, the share of 185 items across the entire CPI basket growing in excess of 3% Y/Y fell further from 28% to 26%, a new recent low. 2019 av 33%, long-term pre-pandemic average of 28%.
The goods share fell to 21% (2019 av 34%, long-term 26%) whilst services is of more note as it continued to trend lower, falling from 41% to 37%.
The latter is still above 31% seen pre-pandemic but has seen greater convergence than its US counterpart.
