Canadian February 2019 CPI

CPI yy
  • Prior was 1.4% y/y
  • CPI m/m +0.7% vs +0.6% expected
  • Services inflation +2.3% y/y vs +2.7% prior

Core measures:

  • CPI common +1.8% vs +1.8% y/y expected (1.9% prior)
  • CPI core +1.8% vs +1.8% y/y expected (1.8% prior)
  • CPI trim +1.9% vs +1.8% y/y expected (+1.9% prior)

Inflation was a touch on the strong side as prices bounced in February.

Details:

  • Shelter (+2.4%) was the largest contributor to y/y inflation
  • Energy prices -5.7% y/y
  • First m/m increase in gasoline prices since July

At the moment, the worry is not inflation, it's growth. The good news is that if the BOC wants to complete its reversal and cut rates then there's no inflation problem, even if it ticked higher this month.