Inflation Frustration – Just Not Cool Enough
- Headline CPI increased 0.1% in September with the annual rate easing 0.1% to 6.9% (versus consensus 6.7%)
- CPI excluding food and energy rose 0.4% (seasonally adjusted)
- The core data was unchanged with CPI-trim at 5.2% and CPI-median at 4.7%
Inflation is proving stickier than hoped and this sets up the Bank of Canada to hike 50 or 75 bps, with the probabilities now tilting in favour of 75 bps.