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Inflation Pulled Down by Base Effects

CANADA
  • May CPI match forecasts with headline inflation rising 3.4% Y/Y and 0.4% M/M (NSA).
  • "Users should consider the impact of base-year effects when interpreting the 12-month price movement." 
  • CPI core inflation trim and median measures at 3.8% and 3.9% respectively.
  • Mortgage interest costs were the largest contributor to Y/Y CPI increase at 30%; the May figure was the fastest pace on record, for the third consecutive month.
  • An alternative core measure, which excludes food and energy, rose 4.0% Y/Y.

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