Canada February CPI 5.7% YoY versus 5.5% expected

• CPI year on year +5.7% recorded its largest gain since August 1991 (+6.0%). February marked the second consecutive month where headline inflation exceeded 5%
• Prior 5.1%
• CPI month-to-month 1.0% versus 0.9% expected. This was the highest reading since February 2013. Last month the month-to-month rose 0.9%.
• The SA MOM CPI comes in at 0.6% vs 0.6% last month
• Prior month MoM was 0.9%
• Core MoM SA 0.3% versus 0.4% last month
• excluding gasoline prices rose 4.7% versus 4.3% in January

Core measures year on year

• Common 2.6% versus 2.4% estimate and 2.4% last month (revised from 2.3%
• Median 3.5% versus 3.4% last month (revised from 3.3%)
• Trimmed 4.3% vs 4.0% last month (unchanged from prior month estimate)

Highlights :

• Canadian consumers paid 32.3% more at the pump versus February 2021. Monthly gas prices increased 6.9% as result of the conflict in the Europe and uncertainty surrounding global oil supply
• food prices rose 7.4% year on year versus 6.5% last month. This is the largest increase since May 2019.
• Shelter costs rose 6.6% year on year at the fastest pace since August 1983. Owned accommodations rose to 6.2% and rented accommodations rose 4.2%
• household appliances increase 7.8% with cooking appliances up 9.4% year on year. Refrigerators and freezers rose 15.6%, while laundry and dishwashing appliances rose 9.1%
• good news is telephone services moved lower with prices falling by -7.9% year on year.

The USDCAD has moved to a new session low (the price has been moving lower today) and approached the 100 day moving average 1.2679. The low price reached 1.2686.