Canadian CPI to Edge Back Below 3% in November - Action Forex
We expect Canadian inflation pressures to have moderated more in November. Headline inflation is expected to have dropped to 2.9% from 3.1% in October reflecting a pullback in retail gasoline prices and further easing in food price growth. That would mark the second time since March 2021 that the reading dips back within Bank of Canada’s 1%-3% target range for inflation after what has been a drawn-out fight between the central bank and very sticky domestic price pressures. We expect price growth excluding food and energy products stayed at 3.4% year-over-year in November, driven by higher shelter costs – more than a third of the rise in ex-food & energy prices in Canada as of October came from mortgage interest costs as higher interest rates continue to flow through to household debt payments with a lag. Both BoC’s preferred core measures – CPI trim and CPI median are also expected to have eased again in November, extending improvements seen in the prior month.
We expect Canadian inflation pressures to have moderated more in November. Headline inflation is expected to have dropped to 2.9% from 3.1% in October reflecting a pullback in retail gasoline prices and further easing in food price growth. That would mark the second time since March 2021 that the reading dips back within Bank of Canada’s 1%-3% target range for inflation after what has been a drawn-out fight between the central bank and very sticky domestic price pressures. We expect price growth excluding food and energy products stayed at 3.4% year-over-year in November, driven by higher shelter costs – more than a third of the rise in ex-food & energy prices in Canada as of October came from mortgage interest costs as higher interest rates continue to flow through to household debt payments with a lag. Both BoC’s preferred core measures – CPI trim and CPI median are also expected to have eased again in November, extending improvements seen in the prior month.
