Market Wire: Canadian Inflation Cools, But Broadens, Raising September Rate Expectations
Canadian headline inflation rates slumped again last month, but price pressures broadened across many services sectors, keeping the Bank of Canada on a tightening trajectory. Data released by Statistics Canada this morning showed consumer prices rising 7.6 percent year-over-year in July, with the month-over-month gain amounting to 0.1 percent, down sharply from 1.4 percent in June. Core inflation, computed as the average of the three price measures preferred by the Bank of Canada (trim, median, and common), increased an annualized 5.3 percent, up from June’s revised 5.23 percent as costs rose in a broader range of economic sectors. Core measures...