April 2016 Canadian CPI 1.7% vs 1.7% exp y/y

Details from the April 2016 Canadian CPI inflation data report 20 May 2016

• Prior 1.3%

• 0.3% vs 0.3% exp m/m. Prior 0.6%

• Core 2.2% vs 2.0% exp y/y. Prior 2.1%

• 0.2% vs 0.1% exp m/m. Prior 0.7%

The BOC may be sitting on their hands policy wise but they may not be able to ignore the core gradually ticking up. The BOC aims to keep inflation at 2%, which is the mid point of their 1-3% target range, so if we see the headline creep above 2% we might start getting some hawkish noises.

Canadian CPI details

Canadian CPI & core y/y