Canada CPI slowed to 2.2% yoy in February, down from 2.4% yoy, but beat expectation of 2.1% yoy. CPI common was unchanged at 1.8% yoy, matched expectations. CPI median slowed to 2.1% yoy, down from 2.2% yoy, missed expectation of 2.2% yoy. CPI trimmed slowed to 2.0% yoy, down from 2.1% yoy, missed expectation of 2.1% yoy.
Statistics Canada commented on the impact of coronavirus on CPI. Flight suspensions, travel advisories and cancellations of public evens may leader to lower prices for trave services. Crude oil prices tumbled due to slow down in activity and travel, as well as tensions between oil-producing nations. Also, there are supply chain disruptions, closure of stores and services, lower interest rates and slowing of economic activity. “The price effects of the outbreak could be more deeply felt in subsequent months.”
