March 21, 2023 12:37 GMT
In Line Core CPI Print Lessens Impact From Headline Miss
- 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.