Canadian CPI Higher, But Still Well Below Target

Total CPI was up 1.5% in December, Up from November's number of 1.2%. Gas prices lead the way with a 5.5% increase. Food prices were down by 1.3%.

The Bank of Canada's series of core inflation data were basically unchanged. Inflation in Canada remains very subdued, don't expect any change in BOC interest rate policy any time soon. You can keep your variable rate mortgages variable.

Meanwhile, despite signs of rising inflation in the Euro zone (but still well below the target), the European Central Bank left its extraordinarily easy monetary policy unchanged (as was expected).

US Federal Reserve Chairwoman Janet Yellen spoke at Stanford University saying: "Economic growth more broadly seems unlikely to pick up markedly in the near term given the ongoing restraint from weak foreign demand". Rising US interest rates (bond yields and longer term rates), a strong $US and an aging population all factors for caution.

Now, it is wait and see what new fiscal and trade policies emanate from the White House: