Canada: Energy lifts CPI, BoC focus on core – TD Securities
The post Canada: Energy lifts CPI, BoC focus on core – TD Securities appeared on BitcoinEthereumNews.com. TD Securities’ Senior Canada Economist Robert Both expects Canadian Consumer Price Index (CPI) inflation to rise to 3.1% year-on-year in April, driven mainly by higher energy and food prices and base effects from last year’s carbon tax changes. Core measures (CPI-trim/median) are projected near 2.1–2.2%, leaving the Bank of Canada (BoC) focused on underlying inflation rather than the temporary headline overshoot into the June policy decision. Energy shock lifts headline inflation “We look for CPI inflation to firm by 0.7pp to 3.1% y/y in April as prices rise by 0.6% m/m, underpinned by another sharp increase for gasoline and other energy products. Base effects from eliminating carbon taxes in April 2025 will also add to the acceleration on a year-ago basis.” “Higher oil/fertilizer prices will also keep upward pressure on food and airfares, but we do not expect broad strength outsid