Canada: CPI inflation to slip to 1.6% y/y in January- TDS

Analysts at TDS are looking for Canadian CPI inflation to slip to 1.6% y/y in January, reflecting a 0.6% m/m increase (market: 0.5% m/m, 1.5% y/y).

Key Quotes

“Energy prices are responsible for much of the monthly gain and partly reflect adjustments to carbon pricing, though sizeable base effects mean that inflation should still soften by 0.3pp. Meanwhile, core inflation measures should prove more stable after firmly significantly in recent months. SEPH (payrolls) employment for December will be released alongside CPI and while it is likely to go unnoticed by markets, we will be watching job growth figures which have massively underperformed LFS job growth thus far in Q4 (-3k vs +109k).”