Canada’s headline consumer price inflation likely to have remained stable in July
Source: FxWire Pro - Commentary / 16 Aug 2018 17:40:55 America/New_York
Canadian headline consumer price inflation is set to be released tomorrow. According to a TD Economics research report, the headline inflation print is expected to have stayed at 2.5 percent on a year-on-year basis in July, with prices flat on the month at 0.3 percent.
Gasoline prices were up on the month while warmer than normal temperatures imply energy services might see a boost as well. Currency depreciation along with tariffs imposed on the U.S. on 1 July imply stronger price pressures for categories such as food at home, appliances and personal care products. However, the tariffs impact just 3 percent of merchandise imports, and impacts are expected to feed through a tag.
The gap between exclusion-based core indexes and BoC core measures is expected to narrow with this report, with the latter remaining close to 2 percent on average and the former moving marginally higher.
“Looking ahead, July CPI likely marks the peak this year, as we continue to expect a moderation toward 2 percent through year end”, added TD Economics.
At 21:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was bearish at -89.7829, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at 33.4564. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.