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Canada CPI Rises +3.4% YOY And Core Remains Sticky

CANADA DATA
  • Canada Dec CPI matches expectations with +3.4% YOY, the first increase in 4 months. CPI -0.3% MOM, also matching expectations.
  • Mortgage interest costs led the increase, rising +28.6% YOY.
  • Gasoline +1.4% YOY from base-effect, also contributing to the headline increase; MOM prices -4.4%. 
  • Core measures remain sticky as median CPI stayed at +3.6% while trim rose to +3.7% from +3.5%. 
  • CPI+3.9% on an annual average basis in 2023. Excluding 2022, this is the highest rate since 1991.  
  • The CPI report is the last major release before the BoC interest-rate decision on Jan 24. 

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