Canada February CPI +2.0% vs +2.1% y/y expected

February Canadian consumer price index

• Prior was +2.1%
• CPI +0.2% m/m vs +0.2% m/m expected
• Core common 1.3% vs 1.3% prior
• Core median +1.9% vs +1.9% prior
• Core trim +1.6% vs +1.7% prior

No signs of a pickup in inflation in these numbers. The slight miss on the headline and downtick in core trim will give the BOC comfort in its dovish stance.

USD/CAD hit a session low of 1.3340 just before the numbers were released but has jumped to 1.3365.

Details:

• Food prices down for fifth consecutive month; down 2.3% y/y
• Transportation -0.8% m/m but still up 6.6% y/y
• Rise in y/y transportation was due to 23.1% rise in gasoline