Canada CPI data for December

  • Prior was 1.2% (unrevised)
  • -0.2% m/m vs 0.0% expected
  • Prior m/m inflation was -0.4%

Core measures:

  • Common 1.4% y/y vs 1.3% prior
  • Trim 1.6% vs 1.6% prior
  • Median 2.0% vs 2.0% prior

Inflation is accelerating in y/y terms but it doesn't look like it will last long as the m/m numbers sink. Part of that is CAD strength but with low inflation and middling retail sales, there nothing here to halt the march higher in USD/CAD.