Canadian inflation data:
- Seven-month high
- Prior was 2.0% y/y
- Month-over-month at +0.4% vs +0.1% expected
- Prior m/m +0.4%
- Prices increased in all 8 major components, with six accelerating
- Food +3.5%
- Transportation +3.1%
- Durable goods +2.5%
- Fresh vegetables +16.7% y/y
Core measures:
- Median 2.1% vs 1.9% exp (prior 1.9%)
- Common 1.8% vs 1.9% exp (prior 1.8%)
- Trim 2.3% vs 2.1% exp (prior 2.0%)
On the headline, the estimates ranged from 1.9% to 2.3%, so this exceeded even the highest estimates. It wasn't just the headline either with two of the three core measures moving higher.
The Bank of Canada may find itself as a long central bank that's not cutting rates. StatsCan said the climb in prices was broad based and points out that excluding gasoline, prices were up 2.7% y/y.
