- Fresh high since 1991
- Prior was +4.8%
- CPI m/m +0.9% vs +0.6% expected-- highest reading since Jan 2017
- Prior m/m reading was -0.1%
Core measures:
- Common +2.3% vs +2.2% expected
- Median +3.3% vs +3.0% prior
- Trimmed +4.0% vs +3.7% prior
The Bank of Canada was already expected to hike in March and this will add on some fresh pressure to signal a series of ongoing hikes. That was already baked in. I don't rule out a 50 bps Bank of Canada hike but it's a long shot. Inflation is a problem everywhere and the BOC has a very clear mandate.
Some y/y highlights:
- Shelter costs up 6.2% y/y -- fastest pace since Feb 1990
- food +5.7% vs +5.2% prior
- Excluding gasoline, CPI up 4.3% vs 4.0% y/y prior
- Services +3.4% vs +3.4% prior
- Goods +7.2% vs +6.8% prior
- Wages rose 2.4% vs 2.6% y/y prior
