Lowest Core Inflation Since 1999 Tests Canada Rate-Hike Talk
- Consumer price index rose 1.3 percent in May from year ago
- Odds of a July move ‘have been dealt a blow,’ RBC says
Buildings stand at night in the skyline of Toronto.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
The Bank of Canada’s efforts to set the stage for a rate increase were set back Friday after data showed inflation pressures continuing to ease.
Canada’s consumer price index rose 1.3 percent in May from a year ago, the slowest pace this year, down from an annual pace of 1.6 percent in April, Statistics Canada said Friday from Ottawa. Another key gauge of price pressures that excludes gasoline and some other more volatile items fell to the lowest since 1999.