CPI (MoM) Canada
Inflation Turned Negative Again in November
Starts Wednesday, January 22, 2020 at 13:30
Updated Wednesday, January 22, 2020
Inflation has been softening in Canada during the end of last year. CPI declined in four out of the last five months of 2018. In August and September we saw some negative numbers, showing a 0.1% decline in inflation in August and a 0.4% decline in September. Although in October, CPI inflation jumped 0.3% higher against 0.1% expected. But, inflation turned negative again in November declining by 0.4% and by 0.1% in December. In January inflation was expected to turn positive and increase by 0.2%, but it missed expectations growing by only 0.1% that month. February was quite positive for prices as inflation bounced 0.7% higher, beating expectations of 0.6%. In March inflation grew by 0.7% again, while in April the pace of growth fell to 0.4%, which is still quite impressive. CPI was expected to slow further to 0.1% in May, but it beat expectations, increasing by 0.1% again, but it turned negative in June, declining by 0.2%. Trimmed CPI lost two points falling to 2.1% YoY, but common and median CPI remained unchanged. In July, CPI increased by 0.5% while the other inflation figures also came stronger than expected. But in August, CPI turned negative again and declined by 0.1%, while in September it fell even more, by 0.4%; so a softening trend seems to be forming here. We saw a reversal in October, as CPI increased by 0.3%, but as last month's report showed, CPI declined by 0.1% in November, although median and trimmed CPI moved higher. Please follow us for live coverage of this event by experienced analysts.
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About CPI (MoM) Canada
Canadian CPI (MoM) is a primary measurement of inflationary pressures facing the CAD. It is derived and presented by the National Statistics Bureau, a governmental entity. Canadian CPI (MoM) is a comparison of retail prices facing a typical basket of goods and services, compared on a month-over-month basis. Monetary policy decisions, trade balance, and consumer confidence are sensitive to CPI. Currency markets involving the CAD are receptive to a growing CPI, as it is a signal of inflation. As inflationary pressures grow or reside, the Bank of Canada (BOC) crafts monetary policy accordingly. High CPI values are often viewed as a precursor for tightening monetary policy toward the CAD, while low readings are conducive to a dovish tone.Canadian CPI is capable of swaying CAD valuations dramatically. Strong values lead to bullish participation for the CAD and lagging CPI facilitates bearish price action.