Notes from the Desk – CAD CPI – No Game Changer
The October CPI data had a tidbit for both the ‘bull’ and ‘bear’ camps.
- Despite a surge in energy prices, and food inflation still in double digits, headline inflation was 6.9% (matching consensus expectations as well as September’s level).
- The two core measures met the Bank of Canada’s expectations, rising by 0.1% and keeping core inflation around 5%
Today’s numbers don’t change the outlook for a terminal overnight rate of 4.25-4.5% and should have little impact on the markets.