Statistics Canada special paper.........>

CANADA DATA: Statistics Canada special paper Monday says the fall in consumer

prices during Covid-19 was slightly overstated when taking into account changes

in spending patterns as many stores closed and people stocked up on food.

- The regular CPI index showed MOM declines of 0.6% and 0.7% in March and April,

while an index that adjusted the weightings to better reflect true spending

patterns declined 0.5% in each month instead. Both measures showed MOM CPI was

+0.3% in May.

- The adjusted YOY inflation rate was 0.0% in April and -0.1% in May, compared

with the official readings of -0.2% and -0.4%, respectively. 

- Report is in line with BOC's view that inflation drop was overstated.

- BOC has said weak inflation is a risk through the restart, though much of the

downward pressure seemed limited to a one-off drop in energy prices.