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17 May 2013
Flash: CAD soft inflation report expected - TD Securities
FXstreet.com (London) - Research teams at TD Securities commented on their opinions for Canadian dollar related news and said that today’s inflation report should look rather soft.
They explained that this is expected with headline CPI falling from 1.0% to 0.5% Y/Y (mkt 0.6%) and core CPI sliding from 1.4% to 0.9% Y/Y (mkt 1.2%), reaching a new cyclical low for the latter. The weakness in core prices is expected by them to reflect lower auto prices and clothing prices, as well as base year effects, while headline inflation will also face downside pressure from energy prices, but will be supported by the shift from HST to PST in British Columbia.
They explained that this is expected with headline CPI falling from 1.0% to 0.5% Y/Y (mkt 0.6%) and core CPI sliding from 1.4% to 0.9% Y/Y (mkt 1.2%), reaching a new cyclical low for the latter. The weakness in core prices is expected by them to reflect lower auto prices and clothing prices, as well as base year effects, while headline inflation will also face downside pressure from energy prices, but will be supported by the shift from HST to PST in British Columbia.