TORONTO, September 15e (Hfrance.fr) - Canada's annual inflation rate accelerated to 4.1% in August, the highest since 2003, from a year-over-year increase of 3 , 7% in July, Statistics Canada announced Wednesday.
Analysts polled by Hfrance.fr expected the annual rate to rise to 3 , 9% in August.
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DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS
"Certainly more is happening than just reopening. We are still seeing sustained pressure on goodssustainability in particular ... It is very noticeable that vehicles, furniture and appliances are all showing very significant gains over a year ago and contributing to both title and core. "
"That said all that it didn't surprise us and I don't think it will surprise the Bank of Canada, they were looking for inflation close to 4% in the third quarter. "
ANDREW KELVIN, CHIEF STRATEGIST CANADA, TD SECURITIES
" This is proof that this is not an entirely transient phenomenon ... There are really only two interpretations of this. One, it's still transient but with a much higher peak, or two, it's, in fact, a little more persistent than feared. Ultimately, we need more time to figure out what the real answer is here. "
" There has been a very significant benefit from airfare contributions, which is something that would normally materialize in previous months, but due to the odd seasonality we have in this late pandemic environment , it has materialized today. "
" This does not mean anything in the short term for the Bank of Canada. They have insisted a lot on the fact that the inflationary shock is transitory. We can see them reducing some of their potential growth estimates, which may imply a smaller output gap now and in the past, in order to reconcile the more persistent inflationary shocks with their supply outlook in the future. 'economy. "
JIMMY JEAN, CHIEF ECONOMIST, DESJARDINS GROUP
"A big leap ... It 's really the opposite mirror to what we saw in the United States yesterday,where the travel components were showing signs of cooling. Here they are showing signs of overheating. "
" Very, very strong pressure on prices in categories where we know that there are labor shortages. There is always the possibility for these sectors to increase wages in order to attract employees and then pass them on to end consumers. "
"It 's still part of the reopening effect. In August we were still getting back to normal ... This effect will eventually subside, but at the moment we have inflation above 4%, so definitely something the Bank of Canada will keep in mind when she decides on her next move. " Reporting by Fergal Smith, Nichola Saminather Edited by Denny Thomas
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