Canada: Odd one out? - ANZ

Analysts at ANZ explain that it had felt like downside inflation surprises had become the flavour of the month, with a number of countries (including New Zealand of course) seeing their latest inflation prints undershoot expectations, but Canada appears to have bucked that trend, with its measure of core inflation rising in June.

Key Quotes

“And it was also not just a commodity price story, with core inflation continuing to look mediocre, or even rolling over a little further for some. But Canada appears to have bucked that trend, with its measure of core inflation rising in June. At 1.4%, the level seems hardly high, and it’s not. But for the Bank of Canada and Governor Poloz, who went out on a limb last week by hiking rates and expecting inflation weakness to be temporary, it will provide a little vindication. It also means that in some pockets of the world, inflation is not completely dead. It has seen the market firm up pricing for another rate hike before year’s end. Australian CPI figures this week are the next focus.”