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July CPI Quickens More Than Expected

CANADA DATA
  • July headline inflation +3.3% YOY, above the BoCs target range of 1-3%. 
  • Base effects from 2022 gasoline price highs are fading while core measures continue to be sticky.
  • Volatile Alberta energy prices and record level mortgage interest costs also contributed to the YOY increase.
  • July CPI +0.6% MOM due to the travel season, although seasonally adjusted inflation is still +0.5%. 
  • June manufacturing sales -1.7%, Q2 -0.8%; led by petroleum and coal.

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