Friday, February 26, 2021

Statistics Canada backtracks on change to core inflation launched simply 5 days in the past. Publishes massive revisions

Statistics Canada will return to the previous methodology

Statistics Canada will go back to the old method

This is an indication about how sizzling the subject of inflation is about to get.

Within the model revealed on February 17, 2021, methodological adjustments to
the seasonal adjustment fashions have been utilized to some enter collection.
Following suggestions from customers, Statistics Canada has decided that
these adjustments require additional analysis and evaluation.

  • CPI frequent unchanged at 1.3%
  • Trim 2.0% vs 1.8% reported final week (and 1.6% exp)
  • Median 2.0% vs 1.4% reported final week (and 1.8% exp)

As you’ll be able to see, these are some fairly massive adjustments to the Financial institution of Canada’s three measures of inflation.

Economists aren’t pleased.

“We’re now left largely at midnight on what core inflation and and reliant upon if and when StatsCan publishes a revisions to its revised methodology that the simply retracted,” mentioned Scotia economists Derek Holt in a report.

The subsequent CPI report will probably be launched March 17.

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