Canada: CPI likely to slip to 1.7% in July – TD Securities

Canada’s CPI inflation is set to slip from 2.0% to 1.7% y/y in July (TD & market) as a 0.2% m/m increase is overshadowed by base-effects from last year, according to analysts at TD Securities.

Key Quotes

“Gasoline prices will provide a significant driver to the monthly increase on a 3.4% increase in the price at the pump alongside a modest increase in food prices. Core measures are also expected to edge lower on a 0.1pp decline the trimmed-mean and weighted-median measures, pushing the average of the three to 1.97% from 2.03% y/y in June.”