Canada reports error in its inflation index

According to an August 15th story on Bloomberg.com, Canada Underestimated Inflation for Five Years, Canada has discovered an error in its inflation index.

The error relates to a miscalculation of hotel room rates and may have lowered the inflation index 0.1 percentage point per year. Because the error is so small, Statistics Canada has decided not to issue revised inflation numbers.

This could be an issue for holders of Canadian inflation-indexed bonds, however.