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Canada CPI Slows More Than Expected, Core Rate Slowest Since 2021

CANADA DATA
  • Canada Jan inflation slows more than expected as CPI+2.9% YOY vs forecast of +3.2% and 0% MOM vs consensus for +0.4%. Dec inflation was +3.4%.
  • Core measures also decelerated as median +3.3% from +3.5%, the slowest since Nov 2021; trim +3.4% from +3.7%, the lowest since Aug 2021. 
  • Five of eight sub-categories slowed with gasoline contributing most to the headline deceleration with -4% YOY.
  • Mortgage interest costs remain the main contributor to inflation, increasing +1.6% MOM and +27% YOY.
  • Seasonally adjusted CPI -0.1% MOM, the first decline since May 2020.

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