Consumer price index data from Statistics Canada for June 2017

  • Headline inflation lowest since Oct 2015
  • Prior was +1.3% y/y
  • CPI m/m -0.1% vs -0.1% expected
  • Prior m/m reading +0.1%

Core y/y numbers:

  • Common 1.4% vs 1.3% prior
  • Trim 1.2% vs 1.2% prior
  • Median 1.6% vs 1.5% prior

The Bank of Canada introduced a trio of core measures earlier this year. They look at all of them but Poloz recently brushed aside all three and blamed low inflation on temporary measures.

Overall, the numbers are soft on the headline but stronger on the core. On the core, those are coming off the lowest readings since 1999, so prices aren't exactly running away. The average of headline readings in Q2 was also 1.3%, which was below the 1.4% BOC forecast.

USD/CAD dropped to 1.2560 from 1.2600 on the headlines and the retail sales data.