🇨🇦 Canada January Consumer Prices Rise to 5.1% Y/Y

*CANADA JAN. CONSUMER PRICES RISE 5.1% Y/Y; EST. +4.8%

*CANADA JAN. CORE CPI TRIM RISES 4.0% Y/Y

*CANADA JAN. CORE CPI MEDIAN RISES 3.3% Y/Y

*CANADA JAN. CORE CPI COMMON RISES 2.3% Y/Y

January headline CPI surprised to the upside and the core average accelerated to 3.2% Y/Y. On a monthly basis, prices expanded by 0.9%. The Energy component rose by 3.1% M/M after the December decline of 2.2%, Gasoline +4.8% vs prev. -4.1%. Food and shelter increased by 1.4% and 0.5%, respectively. With the headline accelerating further from the BoC's target range, the odds of rate increases strengthen after the central bank decided to leave monetary policy unchanged in January. Money markets see the BoC rising rates 7 times in 2022, this would leave the overnight rate close to 2.0%