Canada Core CPI Heats up in July

Dow Jones
08/17

0933 ET - Canada's core-inflation readings heated up in July, although still bouncing around the 2% level on a six- and 12-month basis, says Robert Kavcic, economist at BMO Capital Markets. Two of the Bank of Canada's preferred core-CPI measures rose a tad from the prior month, with the average core inflation measure at 1.95% from a year ago, versus the 1.9% average in June. Kavcic says the average of 3-month annualized core-CPI rates are now running at 2.5% in July, up from 2.0% in the prior month. "The breadth of core components did shift more toward the high side in July," Kavcic says, before concluding that inflation, overall, does appear well-behaved. Kavcic projects the BOC keeping its policy rate unchanged through 2026.

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