Canada: CPI likely to firm to 2.0% in April - TDS

Analysts at TD Securities are looking for the Canadian CPI inflation to firm to 2.0% y/y in April, with prices up 0.4% on the month.

Key Quotes

“Energy prices will be a key driver for the latter on the heels of the federal carbon backstop introduced on April 1st, which raised the price of gasoline by 4.4 cents per litre, while the BoC's core inflation measures should remain stable at 2.0% y/y on average.”

“Existing home sales for April will round out the calendar, with the market consensus looking for a 1.8% m/m advance on the heels of strong preliminary sales for Toronto.”