Another Downside Inflation Surprise

Canada's April headline CPI rose 2.8% yoy, undershooting expectations, while core measures slowed further toward 2%. Goldman Sachs maintains its forecast for the Bank of Canada to keep rates on hold at 2.25% in 2026.

Key Takeaways

• 1.April headline CPI increased by +2.8% yoy, which was below the consensus expectation of +3.1%.
• 2.Preferred core inflation measures (CPI-Median and CPI-Trim) slowed to +2.1% and +2.0% respectively, both surprising to the downside.
• 3.Inflationary strength was concentrated in energy, clothing, and passenger vehicles, while travel and communications saw steep declines.

Table of Contents

• BOTTOM LINE
• KEY NUMBERS
• MAIN POINTS
• Disclosure Appendix
• Reg AC
• Disclosures
• Global product; distributing entities
• General disclosures

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