Contained Core CPI Gives Bank of Canada Reason to Hold
Dow Jones
Yesterday
0917 ET - August marks the first of two inflation reports to be issued prior to the Bank of Canada's late-October decision, which some economist suggest could be a 50-50 call on raising rates given growing Bank of Canada concern about inflation. Total inflation hit 3%, unchanged from the prior month and still at the top end of the BOC's inflation-targeting range. Core inflation, which strips out volatile items like energy and food, was also unchanged, close to 2%. CIBC Capital Markets economist Andrew Grantham says the firm still expects the BOC to remain on hold in October due to downside risks stemming from U.S. trade policy. Further, core-CPI measures are close to 2%, indicating the spillover from high energy prices has not taken hold.
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