Canada CPI accelerated to 2.4% yoy in May, up from 2.0% yoy and beat expectation of 2.1% yoy. CPI core-common was unchanged at 1.8% yoy, missed expectation of 1.9% yoy. But CPI core-median rose to 2.1% yoy, up from 1.9% yoy and beat expectation of 1.9% yoy. CPI core-trim also accelerated to 2.3% yoy, up from 2.0% yoy and beat expectation of 2.1% yoy.

The 12-month change in the Consumer Price Index

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Looking at some details, prices increased year over year in all eight major components in May, with six components growing at faster rates and two components growing at the same pace compared with April. Higher prices for food (3.5%) and transportation (3.1%) contributed to the increased growth in the all-items index.

Consumer prices increase in all major components

Full release here.

USD/CAD drops notably as the release further reduce the chance of BoC rate cut. Nevertheless, sellers are so far refrained as FOMC rate decisions and statement lie ahead, with new economic projections.

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