Free Trial
NATURAL GAS

Poland Sanctions Gazprom Export

OIL

US Set to Sanction Iranian Oil Exports

BONDS

Further upside traction

SILVER TECHS

Still Looking For Weakness Near-Term

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

RBC On Canadian CPI (Aug 16, 0830ET)

CANADA
  • RBC sees Canadian CPI inflation mirroring the July drop in the U.S., expecting headline CPI to slow from 8.1% to 7.7%Y/Y (led by gasoline declining almost 10% since July although is still up more than 30% Y/Y).
  • Global pressures easing off: “Oil prices are down 25% from early June. Global freight shipping costs and times, by air and ocean, have fallen significantly over the past few months”.
  • Domestic factors: “Though higher interest rates are pushing up mortgage payments, home buying costs (which have contributed substantially to price growth over the last year) have shifted from record monthly increases over the winter to declines in the spring and summer”, whilst their own cardholder data shows consumer spending still very strong but plateauing through July and into Aug.
  • Despite the expected dip, inflation remains much too high and isn’t likely to return sustainably to the BoC’s target without the economy cooling. RBC expect a 75bp hike in Sept to follow July’s 100bp.
159 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
  • RBC sees Canadian CPI inflation mirroring the July drop in the U.S., expecting headline CPI to slow from 8.1% to 7.7%Y/Y (led by gasoline declining almost 10% since July although is still up more than 30% Y/Y).
  • Global pressures easing off: “Oil prices are down 25% from early June. Global freight shipping costs and times, by air and ocean, have fallen significantly over the past few months”.
  • Domestic factors: “Though higher interest rates are pushing up mortgage payments, home buying costs (which have contributed substantially to price growth over the last year) have shifted from record monthly increases over the winter to declines in the spring and summer”, whilst their own cardholder data shows consumer spending still very strong but plateauing through July and into Aug.
  • Despite the expected dip, inflation remains much too high and isn’t likely to return sustainably to the BoC’s target without the economy cooling. RBC expect a 75bp hike in Sept to follow July’s 100bp.