Canadian consumer price inflation likely to have risen in June
Source: FxWire Pro - Commentary / 19 Jul 2018 14:33:24 America/New_York
Canadian consumer price inflation data for the month of June is set to be released tomorrow. According to a TD Economics research report, the headline inflation is likely to have risen to 2.3 percent year-on-year, with prices flat on the month. Energy prices were lower on the month due to a fall in gasoline prices but would be a net boost on a year-on-year basis and exchange rate pass-through is also a tailwind.
In general, risks are viewed to the report as tilted to the upside after protracted softness in core categories. CPIXFE in particular registered flat to lower sequential reads over the prior two months partially on one-offs. Therefore, exclusion based measures would continue to underperform the BoC core measures, which continue to be almost 2 percent.
“Looking ahead, we expect CPI to be range bound in the low 2s into Q3”, added TD Economics.
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