Inflation Cools Off in February in Canada, But Remains Decent

• February CPI YoY +1.1% vs +1.3% expected
• January CPI YoY was +1.0%
• CPI MoM +0.5% vs +0.7% expected
• January CPI MoM was +0.6%
• Full report

Core CPI Inflation Data:

• Median +2.0% vs 2.0% exp (prior 2.0%)
• Common +1.3% vs 1.4% exp (prior 1.3%)
• Trim +1.9% vs 2.0% exp (prior 2.0%)

This report turned into a mess last month after Statistics Canada changed its methodology for its three core measures. That didn’t go down well, and then they backtracked. This is the fastest y/y pace in more than a year as gasoline prices climbed 5.0%. Durable goods prices were up 2.8% y/y with appliance prices up 6.1% y/y. The main drag continues to be clothing prices, which are down 4.8%.