Inflation & Prices
Mixed Inflation Signals Give Bank of Canada Options on Rates
- Headline rate quickens to 3.3% on fading base effects
- But key metric of underlying pressure hits nine-month low
This article is for subscribers only.
Inflation ticked back above the Bank of Canada’s control range in July, but progress on underlying price pressures leaves room for policymakers to pause interest-rate hikes.
The consumer price index rose 3.3% from a year ago, the first reacceleration since April, Statistics Canada reported Tuesday in Ottawa. That was faster than the 3% forecast by economists in a Bloomberg survey. On a monthly basis, the index rose 0.6%, double their expectations.