• 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

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