- Prior was 3.0%
- CPY -0.1% m/m vs 0.0% expected
- BOC core 2.4% y/y vs 2.3%
- BOC core +0.1% m/m vs 0.2%
- CPI median 2.0% vs 2.0% expected (prior was 2.0%)
- CPI trim 1.9% vs 1.9% expected (prior was 1.9%)
- CPI common 2.6% vs 2.7% prior
The numbers are generally in line with estimates but a touch lighter at the margin. The problem right now is that gasoline prices have risen materially in September and that’s despite being supressed by a 10c/litre federal gasoline tax holiday that’s been extended through year end.
The Canadian dollar dropped on the release as the market sees a diminished chance of a Bank of Canada rate hike in October. Ahead of the report, the pricing was at 58% and that’s nudged lower in thin trading.
Separately, the July manufacturing sales report was also soft at -0.4% vs -0.2% expected. Some of that can be explained by revisions that showed June data bumped to +0.3% from +0.1%.
This article was written by Adam Button at investinglive.com.
