Market Wire: Canadian Inflation Decelerates, Weighing on Rate Expectations
Core inflation, computed as the average of the three price measures preferred by the Bank of Canada (trim, median, and common), increased an annualized 5.23 percent – close to the 5.3 percent expected in markets, and down from July’s revised 5.43 percent as costs rose across a broad range of economic sectors. Core measures strip out highly-volatile categories, and are often used to develop a better understanding of price pressures in the underlying economy. As expected, shelter cost growth continued to slow, up 6.6 percent year-over-year, but down from 7 percent in the prior month as home prices slumped. Gasoline...