- Prior was 2.8% y/y
- CPI m/m +0.6% vs +0.7% expected
Core measures
- CPI Bank of Canada core y/y +2.0% vs 2.1% prior
- CPI Bank of Canada core m/m +0.5% versus +0.1% prior
- Core CPI MoM SA -0.1% vs -0.1% prior (revised to 0.0%)
- Trim 3.1% versus 3.2% prior (was expected at 3.2%)
- Median 2.8% versus 3.1% prior
- Common 2.9% versus 3.1% prior
- Full report
The headline rose but it was due to a jump in gasoline prices that was no surprise. Excluding gasoline, CPI y/y fell to 2.8% from 2.9% and should give the Bank of Canada more confidence to start cutting rates. Morever, what remains of CPI is largely mortgage interest costs (+25.4% y/y) and rent (+8.5% y/y).
However there is some worry on the services side with it rising to +4.5% y/y from 4.2% y/y. Goods prices decelerated to 1.1% from 1.2%.
