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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CANADA
- The large revisions to CPI-common extend much further back than just May, with sizeable upward revisions back to mid-2021 (20bps) and particularly large (50bps) from March – first chart.
- That can be interpreted in various ways but one read is that the rotation back to services has seen stronger price pressures than thought and this could be persistent. However, in the absence of M/M rates for these core measures preferred by the BoC, the plateauing in the Y/Y rates for all three measures likely overrides this, especially with headline missing by ‘only’ rising 0.4pps to 8.1% Y/Y.
- Turning to a more traditional measure of core (simply ex food & energy), sequential inflation cooled from three months averaging +0.67% M/M to +0.35% M/M, back to rates seen at the turn of the year, albeit still clearly above a rate consistent with the 2% inflation target - second chart.
- This softer sequential rate is further supported by a small miss for industrial product prices (-1.1% M/M vs cons. -0.5%) and raw material prices (-0.1%) also for June.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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