July Canadian Consumer Price Index Preview
Statistics Canada will release the July Consumer Price Index tomorrow at 7am EDT. July headline CPI is expected to ease back to a 0.4% gain from the 0.7% rise in June, while y-o-y CPI is expected at 3.4% from 3.1% prior. The BOC has predicted inflation could accelerate to a 4% clip before the end of the year.
Core CPI is expected to accelerate to a 0.2% increase from 0.1% previous. Y-o-Y core prices are expected up 1.6% from 1.5% in June.
Lower energy prices over the July period should give the BOC some breathing room on inflation, though persistently elevated prices could trickle through to core CPI, as they did in Canada’s southern neighbor that month.