Notes From the Desk – Tracking Trends: CAD CPI on the Downward Path
Governor Macklem and Co. are going to be pleased with the March CPI data.
By the numbers:
- Headline CPI 2.9% (2.9% expected)
- CPI Median 2.8% (3% expected)
- CPI Trim 3.1% (3.2% expected)
Implications.
At their last meeting, the Bank of Canada (BoC) stressed that while happy with recent inflation data, they still needed more proof that price pressures were abating. Today’s numbers provide further evidence that pricing behaviour is normalizing. The average of the core measures is now below 3% (2.95%.) On a three-month annualized basis, the core measures are tracking below 1.5%
Today’s data opens the door just a bit wider for the BoC to cut rates in June or July.
