0938 ET - A relatively soft-inflation backdrop in Canada is offering a counterbalance to recent economic strength and a pickup in hiring, says Bradley Saunders, economist at Capital Economics. He notes the Bank of Canada's preferred measures of core inflation rose 0.23% in July from June, or the strongest pickup in nearly a year. "The key drivers were temporary factors," Saunders says, citing higher travel costs associated with the World Cup in North America and price rises implemented by internet-service providers. Given some of the temporary inflation drivers and that core inflation remains near 2%, "we don't see cause for concern" at the Bank of Canada.