Canada: Core inflation way above target on a 3-month annualized basis - NBF

Today data showed that the Canadian Consumer Price Index rose 0.7% in March, in line with consensus and the core rate climbed 0.3% surpassing expectations. National Bank's deputy chief economist, Matthieu Arseneau, point out the numbers suggest limited slack in the Canadian economy and no need for rate cuts by the Bank of Canada.

Key Quotes:

“The consumer price index rose significantly for a second consecutive month as gasoline prices surged 11.6%, a pace way above the historical norm for March (past 20 years averaged 4.5%). The rent component continued to rise strongly perhaps due the new methodology put in place by Statistics Canada two months ago.”

“The vigour was not limited to those specific components as shown by the evolution of the Bank of Canada’s preferred measures. Indeed, the average of the three core measures bounced back to 2.0% on a year over year basis while consensus was expecting a much lower 1.8%. Our in-house replication of CPI-Trim and CPI-median are showing an even stronger pace recently, rising respectively 2.8% and 2.9% on a three month-annualized basis. This suggests limited slack in the Canadian economy and no need for rate cuts by the Bank of Canada.”

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD steady around 1.1240 in ultra-thin holiday's trading

The EUR/USD pair bounced some 20 pips from its weekly low during the Asian session, now mute around 1.1240 with most market's off today. Softer-than-expected US housing data passed unnoticed.


GBP/USD battling around 1.3000

The GBP/USD pair is heading nowhere fast after bottoming for the week at 1.2978, amid lack of progress in Brexit negotiations.  Encouraging UK data failed to trigger Pound's demand.


USD/JPY: On track to close in the middle of its 50-pip weekly range below 112

The USD/JPY pair remains frozen below the 112 handle in the NA session and there is no reason for it to make a meaningful move as investors are already enjoying the Easter holiday.


The Tale of the Prosperous Consumer-US Retail Sales

American consumers asserted the right to spend in a grand fashion in March boosting retail sales to the fastest expansion in 18 months as the booming job market put the shutdown marked holiday season to rest.

Read more

Gold Forecast: Eyes 8-month rising trendline after weakest weekly close since December

The troy ounce of the precious metal lost around $17 this week and now looks to record its lowest weekly close since the end of December near $1275.

Gold News