- Prior was +2.4%
- CPM m/m 0.0% vs +0.2% expected
- Prior CPI m/m -0.2%
Core measures:
- BOC core 2.6% vs 2.8% prior
- BOC core m/m +0.2% vs -0.4% prior
- Core CPI % m/m +0.1% vs +0.3% prior
- CPI median +2.5% vs 2.5% expected (prior was 2.6%)
- CPI trim +2.4% vs 2.6% expected (prior was 2.7%)
- CPI common +2.7% vs 2.8% prior
- Gasoline prices -16.7% y/y and -13.8% m/m
This report on the headline isn’t quite as dovish as it looks as a drop in gasoline prices was the largeest contributor to the undershoot. Excluding gasoline the overall CPI rose 3.0% y/y, the same as in December.
Aside from that, the impact of the temporary sales tax break (GST/HST) continues to reverberate as it leaves the index. The CPI has seen an acceleration in prices for restaurant meals, and to a lesser degree, prices for alcoholic beverages, toys and children’s clothing. Food from restaurants was up 12.3% y/y
This article was written by Adam Button at investinglive.com.