According to analysts at TD Securities, Canadian CPI was materially stronger than expected in July, with the index rising by 0.5% m/m and the year-ago pace of inflation holding steady at +2.0% y/y. Key Quotes “The upside surprise can be mostly explained by increases in travel costs; the public transportation index increased by 9.5% m/m reflecting a 14% increase in the cost of air transportation while the travel services component posted a 7.0% increase in July.” “All told, those two components contributed 0.37 p.p. to the headline monthly increase. Gasoline prices increased by 3.3% in July, adding another 0.1 p.p. to the monthly increase in headline CPI. From that perspective, inflationary pressures do not look broadly based, with only 5 of 8 sectors seeing price increases on the month.” “The core inflation metrics were substantively unchanged, with the CPI-common ticking higher by 0.1 p.p. to 1.9%, while the CPI-trim and median measures were both unchanged at 2.1% following revisions.” “Even if the upside surprise this month was principally due to one-off factors, core inflation at 2.0% does point to a modicum of stability in the domestic economy (especially paired with Q2 GDP growth of roughly 3.0%). Today’s CPI figures therefore argue against knee-jerk rate cuts in September.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/CHF downside risk remains in place – ING FX Street 4 years According to analysts at TD Securities, Canadian CPI was materially stronger than expected in July, with the index rising by 0.5% m/m and the year-ago pace of inflation holding steady at +2.0% y/y. Key Quotes "The upside surprise can be mostly explained by increases in travel costs; the public transportation index increased by 9.5% m/m reflecting a 14% increase in the cost of air transportation while the travel services component posted a 7.0% increase in July." "All told, those two components contributed 0.37 p.p. to the headline monthly increase. Gasoline prices increased by 3.3% in July, adding another 0.1 p.p.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
