Trimmed-mean core CPI for Canada removes the highest and lowest price-change components of the basket each month before averaging, reducing the impact of outliers and one-off price shocks.
Why FX traders watch it
The trimmed-mean approach can reveal persistent inflation pressures that are masked by large swings in a handful of categories. The Bank of Canada uses it alongside median and weighted-median measures to triangulate underlying price trends.
How to interpret the data
A trimmed-mean above target over multiple months reinforces the view that inflation is broad-based rather than driven by a few volatile items, supporting a hawkish stance from the Bank of Canada and, in turn, the cad.