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CPIX 6M Annualized Hits New Pullback Low

CANADA DATA
  • Sizeable miss for Canadian January CPI - this puts CPI surprisingly back within the central bank's target band while core indexes had the smallest gains since 2021.
  • Some of the lower energy prices are linked to tax cuts rather than corporate pricing actions. Saskatchewan stopped collecting a carbon tax that pulled down natural gas prices by 27% and Manitoba gasoline prices fell 14% as the province suspended its tax on that item.
  • An eye-catching decline for the Core CPI metrics on a 6-month annualized, SA basis, with CPIX dropping to 2.0% - a 0.5ppt drop and comfortably the lowest since 2021 - however all metrics see a decent enough pullback in today's release:

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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