CIBC Research discusses its reaction to today's Canadian CPI print for the month of March.

"Canadian inflation continued a steep descent in March, with that flight path likely to continue for a few more months as some of the largest monthly price increases of 2022 drop out of the year-over-year calculation. However, with core measures remaining above the 2% target, the Bank of Canada will still be concerned as to where the ultimate landing spot for inflation will be. As such, policymakers will likely maintain a hawkish tone for now, with interest rate cuts not in the cards until early next year," CIBC notes. 

"Headline CPI rose 0.5% on the month (0.1% seasonally adjusted), with the annual rate decelerating to 4.3%, from 5.2% in the prior month. Those readings were in line with the consensus expectation. Lower energy prices were the main reason for the deceleration in year-over-year inflation, with that impact negated somewhat by higher mortgage interest costs than a year ago. While food price inflation slowed, prices continued to rise on a month-to-month basis which is in slight contrast to the US figures last week," CIBC adds.