An up start for markets today as Canadian inflation holds steady and the U.S. housing market reports an, overall, good year for 2012. Bond yields have rebounded 4-6 bps.
Canadian consumer inflation increased by a modest annualized rate of 0.8% in December, the same as November. The year-over-year inflation rate clocks in at 1.1% for 2012, well below the Bank of Canada’s 2% target. Slow growth in food and fuel prices are cited as the main reason for the small increase, but prices in five of eight categories registered no increase at all in December. Core inflation, with food and fuel removed, was 0.1% in December and 1.1% year-over-year.
In the U.S., sales of new single-family homes fell 7.3% in December. Year-over-year though 2012 showed an 8.8% increase. The median sale price of a new home climbed nearly 14% y/y, coming up just shy of $249,000 in December.