Canada September 2019 CPI data:
- Prior was +1.9%
- Goods +1.3%
- Services +2.2%
- CPI -0.4% m/m vs -0.2% expected
- Prior m/m -0.1%
- Full report
Core measures:
- Median 2.2% vs 2.2% exp (prior 2.1%)
- Common 1.9% vs 1.8% exp (prior 1.8%)
- Trim 2.1% vs 2.1% exp (prior 2.0%)
The headline number was a disappointment but the core numbers remain very close to target. I don't see this tilting the BOC towards anything more dovish.
The big drag on the headline was a 10.0% y/y fall in gasoline prices. Excluding gasoline, the CPI was up 2.4%. The flipside is that Canadians are buying cars at a good clip with prices up 2.5% y/y.
