Canada: Expects a 0.2% m/m gain in headline CPI – RBC CM

Research Team at RBC Capital Markets, expects a 0.2% m/m gain in Canada’s headline CPI, alongside a 0.3% m/m gain in core CPI.

Key Quotes

“Seasonal increases in educational services (tuition) and clothing prices in the 2.8–3% range will contribute to the gains, while a ~2% decline in travel services prices should provide a partial offset. Indications are that gasoline prices were up a modest 1% m/m in September, with the resulting YoY change in the category expected to moderate from -11.5% to about -3%. This is the main driver behind headline inflation rising four-tenths to 1.5% y/y, while core prices should edge up to 1.9% y/y.”