CANADA MARCH CPI +2.3% YOY VS PRIOR +2.6% ON Travel AND GAS
Apr-15 12:30
CANADA MARCH CPI +2.3% YOY VS PRIOR +2.6% ON TRAVEL AND GAS
CORE TRIM CPI +2.8% YOY FROM +2.9%, MEDIAN STEADY +2.9%
CANADA DATA: Canada March CPI Slows to +2.3% YOY On Lower Travel and Gas
Apr-15 12:30
Canada March CPI slows to +2.3% YOY from +2.6% in Feb., below market expectations. Headline deceleration was largely due to slowdown in air transportation (-12%) and lower gasoline (-1.6%). Offsetting the drop, mortgage interest cost +7.9% and rent +5.1%.
BOC preferred core measures remained elevated. CPI median was unchanged at +2.9% in March. CPI trim slowed to +2.8% from +2.9%.
MOM CPI also decelerated to +0.3% from +1.1% in February, again lower than consensus. Decline also driven by travel tours and gasoline. Moderating the slowdown, food from restaurants +4.7%.
Excluding a federal sales tax break that ended in mid-February inflation would have been -0.1% MOM.
Report is last major data before BoC’s rate decision Wednesday. Markets are divided on whether the central bank will hold or deliver a 25bp cut after seven prior reductions amid trade war pressures on inflation and growth.