Canada: CPI below 1% in March – TDS

Canadian CPI inflation decelerated sharply in March, falling 1.3pp to 0.9% y/y for the first sub-1% reading since 2015, per TD Securities. 

Key quotes

“CPI inflation fell sharply in March; the year-ago measure dropped from 2.2% to 0.9%, while prices fell by 0.6% on a monthly basis.”

“Today's report shouldn't have much impact on monetary policy, as a sharp drop in near-term inflation should be incorporated in BoC forecasts.”