Headline inflation of 1.8% came in lighter than expectations, declining from January’s 2.3%…

… driven mainly by a roll-off of the GST holiday last year, which brought down Y/Y growth in the cost of food, alcohol, and toys…

… adding to the continued downward pressure from shelter inflation (mainly rent & mortgage interest). Combined with some bad labour and GDP numbers recently…

… this CPI print could have driven a cut from the BoC, which now looks unlikely given the potential inflation coming from Iran.