Canada’s headline CPI was unchanged at 1.7% yoy in May, matching expectations. Excluding energy, inflation eased from 2.9% yoy to 2.7% yoy. On a monthly basis, however, CPI rose 0.6% mom, slightly above expectations of 0.5% mom.
Core measures offered a mixed signal. CPI median and trimmed both softened from 3.1% yoy to 3.0% yoy, aligning with forecasts, However, CPI common, a key metric for the BoC, accelerated unexpectedly to 2.6% yoy from 2.5% yoy.
