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Sequential Inflation Rates Perhaps More Concern For BoC

CANADA
  • Whilst the three BoC measures are in Y/Y terms and in the case of the more heavily weighted median and trim measures were broadly as expected in Sept, the sequential run rates required to see the small step higher in ex food & energy inflation to 5.4% Y/Y is perhaps more concerning for the BoC.
  • Seasonally adjusted ex food & energy inflation accelerated back to 0.42% M/M on shelter as it reversed a brief dip to 0.28% in Aug, with the same move in the ex 8 volatile times & indirect taxes category.


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