Canada June CPI Misses Estimates Across All Measures

Canada's consumer price index decelerated more sharply than anticipated in June. The monthly CPI declined 0.4%, underperforming the -0.2% consensus estimate and reversing from a 1.0% gain in May. On a year-over-year basis, headline inflation eased to 2.8% from 3.2%, below the 2.9% forecast.

Core inflation metrics also softened. The CPI excluding food and energy slowed to 1.8% year-over-year (vs. 1.7% expected, prior 1.6%). The Bank of Canada's preferred core measures—median and trim—both came in at 1.9% and 1.8% respectively, undershooting estimates of 2.1% and 2.0% and down from 2.1% and 2.0% in May.