BOC Says Markets Too Focused on Its Core Inflation Gauges

The Bank of Canada warned traders may be putting too much emphasis on its “preferred” core inflation measures, saying it’s weighing a broader suite of gauges that suggest underlying price pressures are closer to its 2% target.

On Thursday, Deputy Governor Rhys Mendes outlined how the central bank has been assessing core consumer price inflation, which strips out more volatile price components like gas and food.