News

Canada: August CPI is a dull affair – TD Securities

Analysts at TD Securities note that Canada’s headline CPI was slightly weaker than expected in August with prices down 0.1% on the month which pushed inflation to 1.9% from 2.0% in July (market: -0.2%, 1.9%).

Key Quotes

“Gasoline was a significant source of weakness with prices down 5.0% m/m which shaved 0.15% off the headline print, while heating (-1.6%) and recreational fuels (-4.4%) added to the headwind.”

“Looking past the headline print, the Bank of Canada's preferred core measures edged slightly lower to 2.0% on average (from 2.03%) on a 0.1pp decline in CPI-common, while CPI-trim and CPI-median held at 2.1% y/y. Alternative core measures were more mixed, with ex. food & energy unchanged at 2.2% y/y while the old CPIX measure edged lower to 1.9% y/y. However, with headline holding near target and 2 of the Bank's 3 preferred measures still sitting above 2%, this will not do much to push the BoC off the sidelines before the end of the year.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.