25 Jun 2024

Canadian headline inflation unexpectedly accelerated last month, and the underlying price indicators followed most closely by the Bank of Canada jumped – making a back-to-back rate cut at the central bank’s July meeting much less likely. Data released by Statistics Canada this morning showed the Consumer Price Index rising 2.9 percent on a year-over-year basis in May, up from the 2.7 percent increase recorded in April, and well above the 2.6-percent consensus expectation. On a month-over-month basis, prices increased 0.6 percent. The print incorporated new consumer price index basket weights, but the statistical agency noted that the headline gain would...