Canada March CPI 1.6% vs +1.8% y/y expected
Canadian March consumer price index details
- Prior was +2.0% y/y
- CPI +0.2% m/m vs +0.4% exp
- •Core common 1.3% vs 1.3% prior
•Core median +1.7% vs +1.9% prior (revised to 1.8%)
•Core trim +1.4% vs +1.6% prior
USD/CAD back testing 1.35 on the headlines, up a quick 30 pips.
Transportation is the story here (gasoline) as the 2016 collapse in energy prices rolls off.
"On a year-over-year basis, gasoline prices rose 15.2% in March, following a 23.1% increase in February," StatsCan said.
Food has been a significant drag on Canadian prices. There has been a bit of a price war at grocery stores.
In the most-recent BOC decision, Poloz highlighted the trend of decelerating prices and this report definitely fits into that narrative.