Canadian headline inflation accelerated in March. On a year-on-year basis, the consumer price index rose to 1.9 percent from 1.5 percent seen in the prior month. The March print is in line with consensus forecast as the drag from past falls in energy prices diminished.
On a year-on-year basis, energy prices dropped 1.2 percent, but this was up from -5.7 percent in February. Food price inflation accelerated to 3.6 percent in March from February’s 3.2 percent. Meanwhile, goods price inflation accelerated to 1.5 percent from 0.6 percent in the prior month. However, service price growth edged modestly lower to 2.2 percent.
Sequentially, the headline consumer price inflation rose 0.2 percent. Gains were comparatively widespread with only household operations and clothing and footwear pulling back. Out of the three core inflation measures, two rose in March. CPI-median accelerated to 2 percent, while the CPI-trim accelerated to 2.1 percent. The CPI-common measure remained same at 1.8 percent. On average, the three core measures are at 2 percent.
“With the Canadian economy going through a soft spot, this data will have little impact on the Bank of Canada's decision making. Indeed, the weakness in the international trade data (also released today) augurs for continued caution from the central bank”, said TD Economics in a research report.
At 13:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was highly bullish at 166.303 while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 3.55612 more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
