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June Inflation and May Factory Sales....>

CANADA DATA
CANADA DATA: June Inflation and May Factory Sales Preview: 8:30 EDT
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- CPI to slow to +2.0% Y/Y in June from May's +2.4% according to MNI median
- MNI median -0.25% M/M from prior +0.4% M/M
- Lower gasoline prices seen reducing inflation on M/M and Y/Y basis...
- ... prior gains in travel services and food also seen as temporary
- Key factor is whether average of three core indexes watched by BoC fade from
prior +2.1% (highest since 2012)
- BoC said last week inflation should moderate in coming months
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- FACTORY SALES (May) seen +2.0% in MNI median from prior -0.6%
- Previous decline was led by extended shutdowns at auto factories, potential to
show a strong rebound
- Weakness may persist in inventory-sales ratio that reached highest since 2009
in last report at 1.53

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