The longest period of deflation in Canadian history since 1953 happened this year, but last month saw this deflation come to a finish. A positive leap to 0.1% happened in the year-to-year inflation rates which was up from the -0.9% Canadians had in September. Questions are still going to be asked even with the minute jump in inflation.

Is this elevated or reduced and what does it all convey?

Giving no facts can sometimes be an improvement than the tiny amount of information these figures represent. In October prices were 0.1% smaller than the previous month when looking at month-to-month inflation sums. Are expenditures going up or are expenditures coming down is the question? Clarification can be obtained by taking a closer look at the price index.

In October, looking at at the 8 major price index commodities such as shelter and clothing, 6 of them saw a a rise. But the greatest change was caused by the reducing gap of this year’s oil price compared to last year’s (along with other energy commodities). A declines in oil prices were observed last October after the summer peak, but at current prices these are around $80. Inflation increased by 0.3%, if you take out other volatile energy-related components, which means more of our hard earned money on consumer items. Comparing inflation rates across the Canadian provinces, with a rise from -1.1% to 0.2%, Ontario saw the greatest rise.

Read the rest of our original feature Inflation Is Back to find out about the possible future trend of inflation in Canada.

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