Royal Bank of Canada previews Canadian CPI data

Sina Financial News Royal Bank of Canada said that due to the sharp drop in gasoline prices a year ago more than expected, affected by the low base effect, Canada’s CPI annual rate in December is expected to rise from 3.1% to 3.4%. The year-over-year growth rate of the Central Bank’s preferred core inflation measure should not change much, while the three-month annualized CPI growth rate that the Central Bank has been focusing on is more likely to edge higher. Still, overall, the breadth and magnitude of inflation continues to decline. The increase in mortgage costs contributed one-third of the growth in the core CPI. The Central Bank of Canada will continue to monitor the price growth of this component, as this increase is a direct result of previous rate hikes. Excluding this component, price growth has been operating within the Central Bank’s inflation target of 1-3%.