Canadian December inflation data:
– Prior was 1.4% (unrevised)
– CPI -0.5% vs -0.4% m/m expected
– BOC core CPI 1.9% vs 2.1% exp
– Prior BOC core 2.0%
The year-over-year numbers paint a skewed picture because of comparables but two consecutive large decreases in the BOC core should be worrisome for Poloz. He brushed aside those worries at the BOC but another month or two of falling core inflation and a cut will be right back on the table.
