Canada: Weak inflation in March - NBF
|According to Matthieu Arseneau, National Bank of Canada’s analysts, weakness seen in the March inflation report, is not the beginning of a new trend.
Key Quotes:
“Canada’s consumer price index rose just 0.1% (m/m) in March in seasonally adjusted terms but due to the base effect the year-on-year inflation rate increased one tick to 2.3% (strongest level since June 2014, top chart). This was below consensus expectations calling for a 2.4% annual rate.
“Headline inflation was slightly below expectations in March. The strong rise in gasoline prices was offset by weaknesses elsewhere. Even if CPI excluding food and energy was relatively strong at 0.2% (m/m) in March, our in-house replication of CPI-Trim (flat) and CPI-median (+0.1%), which are considered preferable by the central bank, were rather weak.”
“We note that CPI services gathered steam over the past two years a development consistent with the improvement on the labour market. The increases in minimum wages combined with a record low unemployment rate in services in Q1 (5 tenths below its 2007 through) suggest that further acceleration in CPI services is not impossible.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.