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23 Jan 2015
Canadian headline inflation may register a lower print at 1.4%y/y – TDS
FXStreet (Barcelona) - Tim Davis, Vice President, Rates and FX Research, at TD Securities previews today’s Canadian data release, and further expects Canada’s headline inflation to register a lower print at 1.4%y/y, fuelled by the fall in energy prices and seasonal drags.
Key Quotes
“A data-double header with the simultaneous releases of CPI (December) and retail sales (November) reports. We are below the market for both headline CPI and retail sales to fall by 0.8% m/m and 0.3% m/m respectively (market: -0.6% and –0.2%).”
“Focus will be on the inflation numbers however given the Bank of Canada’s surprise rate cut. The plunge in energy prices and seasonal drags in December should pull headline inflation sharply lower to 1.4% y/y (mkt 1.6%) from 2.0%.”
“Core CPI on the other hand should remain unchanged at 2.1% y/y (mkt 2.3%) despite a 0.4% m/m fall.”
Key Quotes
“A data-double header with the simultaneous releases of CPI (December) and retail sales (November) reports. We are below the market for both headline CPI and retail sales to fall by 0.8% m/m and 0.3% m/m respectively (market: -0.6% and –0.2%).”
“Focus will be on the inflation numbers however given the Bank of Canada’s surprise rate cut. The plunge in energy prices and seasonal drags in December should pull headline inflation sharply lower to 1.4% y/y (mkt 1.6%) from 2.0%.”
“Core CPI on the other hand should remain unchanged at 2.1% y/y (mkt 2.3%) despite a 0.4% m/m fall.”