Canada July consumer price index data

Canada CPI
  • Prior was +0.7% y/y
  • CPI m/m 0.0% vs +0.4% expected
  • Prior m/m reading +0.8%

Core measures:

  • Median +1.9% y/y vs +2.0% expected (1.9% prior)
  • Common +1.3% y/y vs +1.6% expected (prior 1.5%)
  • Trim +1.7% y/y vs +1.8% expected (prior 1.8%)

Separately, Canadian wholesale trade sales rose 18.5%m/m in June compared to 10.5% expected and +5.7% prior.

The rise in the Canadian dollar was one of the factors that helped to keep prices low. The big drags continue to be in the travel sector where flights were down 8.6% y/y and accommodation -27.0%.

The Canadian dollar was slightly softer on the low inflation numbers. I don't think they make the BOC any more likely to add stimulus but that's the message from markets.