New data may show a clearer path for the Canadian economy
Canada's Consumer Price Index (CPI) rose by 1.9 per cent year-over-year in August, according to a release from Statistics Canada on Tuesday.
That CPI increase repsresents a minor uptick from the 1.7 per cent year-over-year growth seen in July.
Much of that increase was due to a slower fall in the price of gasoline, which declined by 12.7 per cent in August after falling 16.1 per cent in July. Excluding gasoline, CPI rose 2.4 per cent in August, lower than the 2.5 per cent rate seen across May, June, and July.
Despite the slight increase, the CPI print came in slightly cooler than economists had expected. According to Bloomberg consensus was that inflation would rise to two per cent.
The Bank of Canada is set to make its interest rate decision tomorrow, following the release of negative GDP growth data for Q2 as well as falling jobs numbers. This inflation print may further support the broad market consensus of a 25 basis point cut on Wednesday.
