Canada Core Inflation (CPI-common)

## What this measures

A core inflation measure that tracks the price changes common to the categories in the CPI basket, estimated with a factor model and reported as a 12-month change.

## Why it matters

It is one of the Bank of Canada's preferred measures of underlying inflation, with CPI-trim and CPI-median, and strips out one-off swings in single prices.

## How to read it

The Bank's target is 2%. Readings near 2% mean underlying inflation is under control even when headline inflation is not.

## What it does not say

It is revised as new data arrive, because the factor model is re-estimated. It is a model output, not a price anyone pays.

## Source

Statistics Canada, table 18-10-0256-01 (vector v108785713), "Consumer Price Index (CPI) statistics, measures of core inflation and other related statistics; CPI-common (year-over-year percent change)". Palanor pulls it from Statistics Canada's Web Data Service every day and rewrites recent periods so revisions carry through.

Source: Statistics Canada. Reproduced and distributed on an "as is" basis with the permission of Statistics Canada. Statistics Canada Open Licence.