Canadian August inflation data

  • Prior was +1.2%
  • CPI +0.1% m/m vs +0.2% exp
  • Prior 0.0% m/m
  • Prices up in 6 of 8 components y/y
  • Gasoline +8.6% y/y

Core metrics:

  • CPI common y/y +1.5% vs +1.4% prior
  • CPI trim +1.4% vs +1.3% prior
  • CPI median +1.7% vs +1.7% prior

The upticks in the core measures somewhat mitigate the weak headline, but not enough to prevent a 50-pip jump in USD/CAD. Part of the reason for such a big move was that retail sales ex-autos were soft (with a downward revision).