Economist: Canadian CPI data unfavorable to the Central Bank of Canada

On December 17th, Jin10 Data reported that Doug Porter, Chief Economist at Montreal Bank Capital Market, stated that the CPI data for November was a shock to the Canadian Central Bank. The short-term core CPI data favored by the Canadian Central Bank shows that potential price pressures are increasing, which offset the overall CPI slowdown to 1.9%. However, the core CPI for the fourth quarter will be close to the average level of 2.65%, or higher than the Canadian Central Bank’s forecast of 2.3%. The weakening Canadian dollar may further push up prices. In general, the Canadian Central Bank may cut interest rates by 25 basis points at the appropriate time.