Canada CPI for April 2020
- MoM 0.5% versus 0.2% estimate
- Prior was +0.5% m/m
- YoY 3.4% versus 3.1% estimate
- Highest year-over-year reading since May 2011
- Full report
Core measures:
- Core CPI common year on year 1.7% versus 1.7% estimate
- Core median YoY 2.3% versus 2.1% estimate
- Core trim 2.3% versus 2.2% estimate
That's two months in a row of 0.5% increases. That's a hefty pace the will quickly get far above the BOC target. USD/CAD dipped on the headline but the market is suddenly in a very skeptical mood regarding inflation. Plus, there's a deeper negative tone in markets that's hurting the loonie and other commodity currencies.
There are also some skews in the report. Transportation prices rose 9.4% as gasoline prices jumped and people began booking travel again. The y/y rise in gasoline prices was 62.5% -- the highest on record.
