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BoC’s Preferred Core Beats Expectations But Still Slows To 2.5% Annualized

CANADA DATA
  • Headline CPI surprisingly held steady at 3.1% Y/Y (cons 2.9, analyst range 2.7-3.1) in November.
  • Core rates should get more attention and these also were stronger than expected, with trim/median averaging 3.45% Y/Y (cons 3.35%), unchanged after a downward revised 3.55% Y/Y.
  • The average of trim/median increased a seasonally adjusted 0.3% M/M whilst revisions in latest monthly were relatively limited - see below charts.
  • It left 3-month core inflation slowing from 2.9% to 2.5% annualized (slowest since Feb’21) but the 6-month run rate increased a tenth to 3.3% annualized.

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