<ul><li><a href="https://www.forexlive.com/news/canada-cpi-inflation-yoy-19-vs-19-estima…; target="_blank" rel="follow">Prior </a>month 1.9%</li><li>CPI m/m +1.1% versus +0.6% expected. Prior month +0.1%</li><li>Core CPI m/m +0.7% versus +0.4% last month</li><li>CPI y/y +2.6% versus 2.2% estimate</li><li>Core CPI y/y 2.7% versus 2.1% last month</li><li>CPI Median y/y 2.9% versus 2.9% estimate. Last month 2.6% revised from 2.4%</li><li>CPI Trim 2.9% versus 2.6% expected Last month 2.9%</li><li>CPI Common 2.5% versus 2.5% last month</li></ul><p>This report is a mess of special factors over the next few months. On Feb 15, the HST (Canada's sales tax) went back into effect on some items after a two month holiday. Now, starting in April, the carbon tax will be removed.</p><p>One of the items that was removed was restaurant food prices and Statistics Canada said that category "contributed the most to the acceleration in the all-items CPI in February."</p><p>There was some downward pressure on the main index from gasoline as y/y prices decelerated, with a 5.1% increase in February following an 8.6% gain in January.</p><p>Here were 3 categories of items that had the sales tax break; it covered about 10% of the all-items CPI basket.</p>
This article was written by Adam Button at www.forexlive.com.