Canada May CPI +1.7% y/y vs +1.7% expected

• Prior month 1.7%
• CPI m/m +0.6% versus +0.5% expected. Prior month -0.1%
• Core CPI m/m +0.6% versus +0.5% last month
• Core CPI y/y +2.5% versus 2.5% last month
• CPI Median y/y 3.0% versus 3.0% estimate. Last month 3.2%
• CPI Trim 3.0% versus 3.0% expected Last month 3.1
• CPI Common 2.6% versus 2.5% last month

USD/CAD was trading down 13 pips to 1.3718 ahead of the data and was unmoved as the numbers were nearly in-line with the consensus. Still, these numbers will make it tough for the Bank of Canada to cut rates in July. A +0.6% m/m reading on the headline and core is far from target and that’s going to stay in the y/y for the next year.

This article was written by Adam Button at www.forexlive.com.