- Largest month-over-month gain since 1991
- Prior was +1.0% m/m
- CPI y/y 6.7% vs 6.1% expected
- Prior y/y reading was +5.7%
- Prices rose across all eight major components
- Gasoline prices +39.8% m/m
Core measures y/y:
- Median 3.8% vs 3.5% prior
- Trim 4.7% vs 4.3% prior
- Common 2.8% vs 2.8% expected(prior was 2.7%)
- BOC core 5.5% vs 4.2% expected (prior was 4.8%)
- BOC core +1.0% m/m vs +0.5% expected
The headline inflation rate is the highest in 31 years. USD/CAD fell to 1.2520 from 1.2540 on the release. The BOC had already flagged the possibility of another 50 basis point hike last week; this adds to the likelihood it will come to pass. What will be particularly worrisome to them is the broadening of pressures.
