In September, Canada’s CPI deceleration surpassed expectations. The annual inflation rate receded to 3.8% yoy, falling short of the anticipated 4.0% and marking a downtick from August’s 4.0% yoy.
Gasoline prices, affected by the base-year effect, showed an escalation, recording a 7.5% yoy ascent compared to August’s 0.8% yoy . Nevertheless, when gasoline was excluded, CPI realized a slowdown to 3.7% yoy from the previous month’s 4.1% yoy.
On a monthly basis, CPI was down by -0.1% mom, contradicting the expected 0.1% mom incline. A -1.3% monthly decline in gasoline prices significantly influenced this downturn.
In the examination of the core inflation measures, which BoC meticulously observes, all three – CPI median, CPI common, and CPI trimmed – fell short of expectations.
CPI median receded from 4.1% to 3.8% yoy, against the projected 4.0% yoy. CPI common retreated from 3.9% yoy to 3.7% yoy, not meeting 3.8% yoy expectation. Similarly, CPI trimmed dwindled from 4.8% yoy to 4.4% yoy, undermining the anticipated 4.7% yoy rate.