Inflation Jumps Higher Again in Canada
Inflation has been pretty soft in Canada during the second half of 2018. We have seen it decline in four out of the last five months last year as crude Oil prices tumbled lower during that period. But in February, we saw a sudden jump higher by 0.7%. Actually, it wasn’t so sudden because Oil prices reversed higher at the start of this year. helped by production cuts from the OPEC+ mob. Today’s CPI report was even better, so here are all the numbers for March:
| Canadian Economic Data | Actual | Expected | Previous |
| CPI MoM | 0.7% | 0.7% | 0.7% |
| Core CPI MoM | 0.3% | 0.7% | |
| Common CPI YoY | 1.9% | 1.9% | 1.9% |
| Median CPI YoY | 2.0% | 1.8% | 1.8% |
| Trimmed CPI YoY | 2.1% | 1.8% | 1.9% |
| Trade Balance | -$2.9B | -$3.5B | -$4.2B |
CPI jumped 0.7% higher again in March while core CPI increased by 0.3%, which is still pretty good for cor inflation. But most importantly, Median CPI YoY jumped two points higher while expectations were that it remained unchanged and Trimmed CPI which is similar to core CPI jumped to 2.1% against a decline to 1.8% expected.
The trade report was positive as well, showing a decline in the deficit during February. The CAD jumped around 60 pips higher after these reports were released. USD/CAD dived lower but the support level below 1.33 which has been holding for nearly three weeks is still holding for the time being.
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