May Canadian CPI 2.3% vs 2.1% exp y/y

• Prior 2.0%
• 0.5% vs 0.3% exp m/m. Prior 0.3%
• Core 1.5% vs 1.4% prior y/y
• 0.3% vs 0.2% prior m/m
• BOC core 1.7% vs 1.5% exp y/y. Prior 1.4%
• 0.5% vs 0.2% exp m/m. Prior 0.2%

Inflation jumping again sends USD/CAD through 1.0800 to 1.0775. Down here we have the 200 dma at 1.0776 and the lower end of the 2014 range.

CPI has gone from 1.2% in Feb to 2.3% in May. That’s a very sharp rise in a short space of time and will get the BOC hot under the collar.

Reuters say that higher energy costs was the driver but energy inflation fell to 0.9% from 2.4% in April and remained unchanged y/y at 8.4%

Canadian CPI 20 06 2014