Price Level of Capital Formation for Canada

PLICPPCAA670NRUG • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.92

Year-over-Year Change

4.37%

Date Range

1/1/1950 - 1/1/2019

Summary

The Price Level of Capital Formation for Canada measures the rate of change in the prices of capital goods and services in the Canadian economy. It is a key indicator of investment trends and business confidence.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This index tracks the prices of physical capital goods and intellectual property products used in the production of other goods and services in Canada. It is an important metric for understanding the investment climate and economic outlook.

Methodology

The data is collected through surveys of Canadian businesses and compiled by Statistics Canada.

Historical Context

Policymakers and economists use this index to analyze the state of capital investment and identify inflationary pressures.

Key Facts

  • The index has a base year of 2012.
  • Capital formation accounts for over 20% of Canada's GDP.
  • Prices of capital goods directly impact business profitability and expansion.

FAQs

Q: What does this economic trend measure?

A: The Price Level of Capital Formation for Canada measures the rate of change in prices for capital goods and services used in the production process.

Q: Why is this trend relevant for users or analysts?

A: This index provides insights into the investment climate and inflationary pressures facing Canadian businesses, which is crucial for economic forecasting and policy decisions.

Q: How is this data collected or calculated?

A: The data is collected through surveys of Canadian businesses and compiled by Statistics Canada.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this index to analyze the state of capital investment and identify inflationary pressures in the Canadian economy.

Q: Are there update delays or limitations?

A: The data is typically released on a quarterly basis, with a brief delay to allow for collection and compilation.

Related Trends

Citation

U.S. Federal Reserve, Price Level of Capital Formation for Canada (PLICPPCAA670NRUG), retrieved from FRED.