Canada headline CPI slowed to 1.4% yoy in January, down from 2.0% yoy, matched expectations. CPI core-common was unchanged at 1.9% yoy. CPI core-median was unchanged at 1.8% yoy. CPI core-trim was unchanged at 1.9% yoy. Energy costs declined 6.9%, while the growth in the price of services slowed to 2.7% as transitory pressures from the air transportation, telephone services and travel tours indexes dissipated.
USD/CAD drops again as the CPI risk is now cleared. Rebound in oil price is helping the Loonie. WTI crude is now back above 56.7, comparing to this week’s low at 55.11.
