Canada CPI data
  • Largest increase since January 1983
  • Prior was 6.8%
  • CPI m/m +1.4% vs +1.0% expected
  • Excluding gasoline +6.3% y/y vs +5.8% prior
  • Gasoline prices +12.0% in May
  • Average hourly wages +3.9% y/y
  • Energy prices +34.8% y/y
  • Shelter costs +7.4% y/y
  • Services +5.2% y/y vs +4.6% prior, led by hotels and restaurants
  • Full report

Core measures:

  • Median 4.9% vs 4.4% prior
  • Trim 5.4% vs 5.1% prior
  • Common 3.9% vs 3.5% expected (3.2% prior)

This report solidifies the case for 75 basis points at the upcoming BOC and makes an argument for even more. The core measures are broadening and the Bank of Canada rhetoric signals they will tackle  inflation  full-on. The looming problem is that the Canadian housing market is busting.