Statistics Canada backtracks on change to core inflation released just 5 days ago. Publishes big revisions
Statistics Canada will go back to the old method
Here's a sign about how hot the topic of inflation is about to get.
In last week's CPI report, Statistics Canada surprised economists with methodological changes to core CPI numbers. Now they've had a change of heart.
In the version published on February 17, 2021, methodological changes to the seasonal adjustment models were applied to some input series. Following feedback from users, Statistics Canada has determined that these changes require further evaluation and analysis.
The changes are:
- CPI common unchanged at 1.3%
- Trim 2.0% vs 1.8% reported last week (and 1.6% exp)
- Median 2.0% vs 1.4% reported last week (and 1.8% exp)
As you can see, these are some pretty big changes to the Bank of Canada's three measures of inflation.
Economists aren't happy.
"We're now left largely in the dark on what core inflation and and reliant upon if and when StatsCan publishes a revisions to its revised methodology that the just retracted," said Scotia economists Derek Holt in a report.
The next CPI report will be released March 17.