Canada CPI Median YoY

Info

History

Chart

Impact:

High

Next Release:

Date:

Forecast: 2.9%

Period: Jun

What Does It Measure?

The Canada Consumer Price Index (CPI) Median YoY measures the year-over-year change in prices for a basket of goods and services consumed by households, focusing specifically on the median change to provide a more stable reflection of inflation by mitigating the effects of volatile price changes. Key areas assessed include the costs of food, housing, transportation, and other essential items, making it a crucial national indicator of inflationary pressures within the Canadian economy.

Frequency

This economic event is released monthly, typically reported in the third week following the month being assessed, and may be presented as either a preliminary or final figure.

Why Do Traders Care?

Traders closely monitor Canada’s CPI Median YoY as it reflects inflation trends that can influence monetary policy decisions, thereby impacting interest rates, currency values (particularly the Canadian Dollar), and broader financial markets. Higher-than-expected inflation readings generally bolster expectations for interest rate hikes, which can be bullish for the Canadian Dollar, while lower readings may spark concerns of economic slowdown, leading to bearish sentiment.

What Is It Derived From?

The CPI Median YoY is derived from comprehensive surveys conducted by Statistics Canada, collecting price data from thousands of retail establishments across various regions and sectors. The index employs a methodology that calculates the median price change among a range of goods and services, ensuring that extreme price fluctuations do not distort the overall inflation measure.

Description

The CPI Median YoY presents data on inflation by comparing the price levels of consumer goods and services from one year to the next, which eliminates seasonal volatility and provides insight into long-term price trends. By focusing on median prices, it aims to offer a more accurate view of inflationary pressures experienced by consumers, particularly in times of economic uncertainty or volatility.

Additional Notes

The CPI Median serves as a coincident economic indicator that reflects current inflation conditions, crucial for understanding consumer purchasing power and future economic trends. Additionally, it is often compared against other CPI measures to ascertain broader inflation dynamics and to inform policy discussions at both national and regional levels.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise