🇨🇦Cable FX Macro Weekly Note: Canada Nov. CPI

**As seen in Risk In The Week report 12/16/2022, cablefxm.co.uk/reports

October consumer prices came in at 6.9% Y/y, this was unchanged from the prior month and in line with the consensus forecast. On a yearly basis, food and transportation prices posted the largest increases, the latter came in faster than the prior at 9.5% while food expanded at 9.5%. Prices excluding food and energy came in at 5.3% Y/ y, this was slower than the prior 5.4%. On a monthly basis, October prices jumped by the fastest rate since June, headline CPI rose by 0.7% M/m. The rise was led by gasoline, as pump prices increased by 9.2% on the month. Both goods and services registered advances, at 1.2% and 0.2%, respectively. Analysts at RBC note that CPI is falling further away from its peak of 8.1% in June. They say gas prices fell in November by 4%, while food prices are likely to stay above 10% Y/y. While the BoC’s measures of core inflation are still above target, RBC sees early signs of broader inflation pressures moderating. The desk at CIBC says that despite the declines in inflation, we will have to wait for next spring to have readings closer to target.