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BoC Inflation Language: No Mention Of Latest M/M Softening

CANADA

No explicit reference of the latest monthly dip in June, still points out 3-month resilience

  • “Moreover, with three-month rates of core inflation running around 3½-4% since last September, underlying price pressures appear to be more persistent than anticipated. This is reinforced by the Bank’s business surveys, which find businesses are still increasing their prices more frequently than normal.” … “Governing Council remains concerned that progress towards the 2% target could stall, jeopardizing the return to price stability.”
  • Really not very different from last month’s “However, with three-month measures of core inflation running in the 3½-4% range for several months and excess demand persisting, concerns have increased that CPI inflation could get stuck materially above the 2% target.”

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