Canada’s headline came in at 1.3%, while core CPI inflation increased to 2.1%. Inflation excluding food and energy remained unchanged at 1.7%.
Overall, the report shows that inflationary pressures increased slightly in March mainly as a result of continued pass-through from the weaker CAD. However, broader inflationary pressures remain subdued as evidenced by inflation excluding food and energy.
Copy signals, Trade and Earn $ on Forex4you - https://www.share4you.com/en/?affid=0fd9105
We continue to believe inflation is not the main source of concern for the Bank of Canada (BoC) currently, as the Bank continues to view that a significant amount of excess supply will counterbalance upside pressures from the weaker currency.
We continue to believe the BoC will keep its policy rate on hold this year.