- Prior was 3.0%
- CPI m/m % vs +0.3% expected
- Prior m/m reading was 0.4%
- Gasoline prices -% vs -18.3% y/y in prior month
- Gasoline prices % m/m vs -0.8% prior month
- Ex gasoline +4.0% y/y vs +4.4% prior
- Food +8.3% y/y vs +8.3% y/y prior
- Mortgage interest costs 30.1% y/y vs 4.9% increase in May
- Goods inflation +1.4% vs +2.1% y/y prior
- Services inflation +4.2% vs +4.9% prior
Core measures:
- BOC core y/y 3.2% vs 3.5% expected (prior 3.7%)
- BOC core m/m -0.1% vs +0.4% prior
- Median 3.9% vs 4.0% prior
- Trim 3.7% vs 3.8% prior
- Common 5.1% vs 5.2% prior
There's no reason for the Bank of Canada to continue to raise interest rates. USD/CAD is up to 1.3218 from 1.3200 on this data but some of that move is as a result of broad US dollar strength on a strong US retail sales report released at the same time.
Separate PPI data from Canada:
- -0.6% m/m vs -0.2% expected
- Prior PPI -1.0% (revised to -0.6%)
Here is CIBC after the report:
"We continue to think that the Bank of Canada is overshooting what was necessary in order to bring price pressures under control, and see inflation dipping below 2% in the second half of next year."
