Canada March CPI +2.4% y/y vs +2.6% expected

Canada's March CPI rose 2.4% year‑on‑year, below the 2.6% forecast, with monthly CPI +0.9% versus +1.1% expected. Several core measures are mixed: the Bank of Canada (BOC) core eased to 2.5% (from 2.3%) while month‑on‑month core inflation softened, and trim/median/common readings have been near 2.3–2.6%. The release is still affected by the prior GST/HST temporary tax holiday (Dec 14, 2024–Feb 15, 2025), with March the last month of distortion before clean y/y comparisons return. Overall the piece argues the underlying disinflation trend remains intact, which is dovish for the BOC. Market impact: weaker-than-expected headline and soft core dynamics increase odds of a more dovish BoC outlook, a negative for CAD and supportive for a higher USDCAD.