MNI 5 Things: Canada Feb CPI Tops Expectations, BOC Target>

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the February 

data on the Canadian Consumer Price Index released Friday by Statistics 

Canada: 

     - Headline unadjusted CPI rose 0.6% on the month, more than the 

0.5% increase expected by analysts, but a slowdown from 0.7% in January. 

All eight major components were up on the month. Travel tours (+18.1%) 

was the largest upward contributor. 

     - On a 12-month basis, headline CPI rose 2.2%, the highest since 

October 2014. It was above expectations of 2.0%, and also topped the 

Bank of Canada's 2.0% target. Gas prices (+12.6%) were the largest 

upward contributor. 

     - The range of three BOC's preferred measures of underlying 

inflation edged up further to 1.9%-2.1% from 1.8%-1.9% in January. 

CPI-common picked up to 1.9% from 1.8%, the highest since February 2012. 

CPI-trim and CPI-median both rose 2.1%, their highest rates since June 

2016 and October 2016, respectively. 

     - The data brings a dilemma to the BOC facing signs of slowing 

growth and above-target inflation, with underlying inflation continuing 

to reflect the absorption of excess capacity. 

     - Seasonally adjusted CPI slowed to 0.2% month-to-month from 0.5% 

in January. Excluding food and energy, the index picked up to 0.3% from 

0.2%. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

[TOPICS: M$C$$$,MACDS$]