Sumary of Canadian inflation likely peaked in August – CIBC:
- Canadian CPI rose 4.1% y/y in August, up from +3.7% in July Canadian CPI was higher than anticipated in August but the Bank of Canada is likely to look through it and stay the course, according to economists at CIBC.
- “Canadian inflation climbed even higher-than-expected in August, but that might represent the summit of the mountain,” wrote economist Royce Mendes.
- The component had been tweaked for months because of many missing routes but those were brought back en masse in this report.
- The three core measures ranged from 3.3% to 1.8% but Mendes argues that BOC puts the most weight on the lowest one.