MNI DATA IMPACT:Canada CPI Ticks Up to +1.5% Y/Y; Core Down>

By Yali N'Diaye

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

data on the Canadian CPI released Friday by Statistics Canada: 

     - Headline unadjusted CPI rose 0.7% on the month, more than the 

0.6% gain expected by analysts in a MNI survey, with all the eight major 

components recording an increase. On a seasonally adjusted basis, CPI 

was up 0.3% on the month, and 0.2% excluding food and energy. 

     - The monthly boost came in large part from gasoline prices, which 

were up 1.9%, their first monthly increase since July 2018. CPI 

excluding gasoline rose 0.6% on the month, the largest gain in a year. 

     - On a 12-month basis, however, the headline CPI remained below the 

Bank of Canada's target of 2.0%, although it ticked up to 1.5% from 1.4% 

in January, as the decline in gas prices was smaller: -11.9% in February 

vs. -14.2% the previous month. Still, gas prices remained the top 

downward contributor to the 12-month CPI. The market consensus was 

+1.4%. 

     - CPI excluding gasoline alone rose 2.1% year-over-year, the same 

pace as in January. Mortgage interest cost was the top upward 

contributor, with an 8.1% 12-month gain, the largest since August 2008. 

     - The BOC's preferred measures of core inflation remained around 

the 2.0% target in February, showing little pressure coming from 

economic activity. The average was 1.8% in February, down from 1.9% in 

January, with CPI-common down to 1.8% from 1.9%, while the other two 

measures remained unchanged. 

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

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