Canada CPI data for December
– Prior was 1.2% (unrevised)
– -0.2% m/m vs 0.0% expected
– Prior m/m inflation was -0.4%
Core measures:
– Common 1.4% y/y vs 1.3% prior
Inflation is accelerating in y/y terms but it doesn’t look like it will last long as the m/m numbers sink. Part of that is CAD strength but with low inflation and middling retail sales, there nothing here to halt the march higher in USD/CAD.
