Canadian inflation data for September

  • Prior was +1.4% y/y
  • CPI +0.2% vs +0.3% m/m expected
  • Prior m/m reading was +0.1%

Core metrics:

  • CPI common y/y +1.5% vs +1.5% prior
  • CPI trim +1.5% vs +1.4% prior
  • CPI median +1.8% vs +1.7% prior (prior revised to +1.8%)

Details:

  • CPI ex-gasoline +1.1%, same as prior
  • Prices up in 6 of 8 components
  • Transportation costs +3.8% y/y vs +2.8% prior
  • Gasoline prices +14.1% y/y

There is some small acceleration in the core measures but the retail sales numbers released at the same time were very weak and that's sending the Canadian dollar lower.