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In Line Core CPI Print Lessens Impact From Headline Miss

CANADA DATA
  • Headline CPI inflation slows more than expected in February from 5.9% to 5.2% Y/Y (cons 5.4%)
  • However, the BoC’s preferred core, an average of the median & trim measures, slowed as expected from 5.05% to 4.85% Y/Y, whilst the more traditional core (ex food & energy) also eased a tenth to 4.84% Y/Y.
  • Core coming in in line with expectations deadens the impact from headline miss. Immediate reaction to CAD CPI sees 2Y GoC yields trim 2.5bps for still +12bp on the day (Tsys +15bp) whilst minimal reaction in USDCAD, just 10 pips higher.

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