Make that three in a row! The Bank of Canada’s preferred core inflation gauges were soft again in the month of March. At the margin, that slightly added to June cut pricing. That’s welcome news after all that Canadians have been through. But we still need much more evidence. The core question of whether this is a durable soft patch remains open in my opinion. There is a lot of ground to cover yet between now and the June meeting and I’ll give reasons for why I’m not prepared to fundamentally pivot to June. On balance, the high resilience in core services pricing and ongoing suspect disinflation on the goods side of ... (full story)