Canada August CPI data

  • Prior was +2.0%
  • Services +0.1% m/m
  • Goods -0.6% m/m
  • CPI -0.1% m/m vs -0.2% expected
  • Prior m/m +0.5%
  • Full report

Core measures:

  • Median 2.1% vs 2.1% exp (prior 2.1%)
  • Common 1.8% vs 1.9% exp (prior 1.9%)
  • Trim 2.1% vs 2.0% exp (prior 2.0%)

Gasoline prices fell 5.0% in the month and are down 10.2% y/y but with prices spiking this month and the slump in late-2018 coming into the picture, the headline numbers will tick higher in the months ahead.

On the core side, there isn't anything that jumps out. Shelter prices rose 0.2% and were up 2.4% y/y. Services inflation was also up 0.1% and 2.6% y/y while goods prices have been much more muted. That points to a tight jobs market.

USD/CAD slipped after the data but quickly bounced back with all eyes on the Fed later.