• Notes from the Desk | Canadian Inflation - A Glimmer of Hope

Notes from the Desk | Canadian Inflation – A Glimmer of Hope Sept 20 2022

Notes From The Desk: Canadian Inflation – A Glimmer of Hope

Canadian inflation slowed in August, with headline CPI coming in at 7% (7.3% expected) as lower gasoline prices offset rising food costs.

The closely watched average of the three core measures also slowed from 5.4% to 5.2%.

Today’s data reinforces the market expectation that Canadian overnight rates need not go much higher than the 3.75-4% range, which allows short-end yields to drop a bit.

Furthermore, with the cross-border divergence in inflation and employment trends, the terminal rate in Canada is likely to be lower than in the US.

Share this...
Share on email
Email
Share on linkedin
Linkedin