**As seen in Risk In The Week report 02/18/23, cablefxm.co.uk/reports
Canadian prices eased to 6.3% Y/y in December, the figure was in line with the survey median. The Trim/Median core prints averaged 5.15% Y/y, down from a prior 5.25%. Key components like food and shelter did show signs of acceleration on the month, however, the pace slowed. Food prices expanded by 0.3% vs a prior 1.2% M/m, shelter rose 0.4% vs a prior 0.6% M/m. Gasoline prices printed a sharp drop of 13.1% extending from a prior month of declines, energy declined by 7.9% M/m. Goods prices fell by 1.7%, while services rose by 0.3% on the month. In a survey compiled by Bloomberg, projections for Q1 inflation were revised higher to 5.5% from 5.4%, however, 2023 inflation is seen slowing to 3.8% Y/y. Analysts at RBC see food prices edging lower due to a moderation in agriculture prices, but warned that energy is likely to rise on higher gas prices during January. The desk at TD will be focusing on the services group for signs of moderation. They say that officials are likely to see through a recent rise in gasoline prices and warned that if the report brings any upside surprises, the BoC’s planned pause may be shorter than initially thought.
Comments