According to National Bank of Canada’s analysts, Krishen Rangasamy, the rise in prices during June was a surprise even to the Bank of Canada. They see that recent momentum of different core inflation measures do not suggest runaway prices. Key Quotes: “June’s CPI data was hotter than expected in part due to surprises on food prices. Higher operating costs due to earlier increases to the minimum wage explain the surge in restaurant food prices since the start of the year (+4.5% y/y). Upward pressures on food prices could also be due to the depreciation of the Canadian dollar which is effectively increasing import prices of several fast turnover items such as fresh fruits and vegetables.” “The uptick in prices is consistent with an economy with no remaining slack. June’s increase was a surprise even to the Bank of Canada who, just last week had estimated Q2 CPI to be 2.2% y/y ─ actual Q2 CPI ended up at 2.3% y/y. That’s not to say the central bank will panic. Recent momentum of different core inflation measures do not suggest runaway prices. Our in-house replication of CPI-Trim and CPI-median, show both measures running below the Bank of Canada’s 2% mid-point target on a 3-month annualized basis.” “Canada’s consumer price index rose 0.1% (not seasonally adjusted) in June, allowing the year-on-year inflation rate to climb to 2.5% the highest since January 2012, and well above the 2.3% print expected by consensus.” 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 WTI recovers slightly toward mid-$68s after Baker Hughes report FX Street 5 years According to National Bank of Canada's analysts, Krishen Rangasamy, the rise in prices during June was a surprise even to the Bank of Canada. They see that recent momentum of different core inflation measures do not suggest runaway prices. Key Quotes: "June's CPI data was hotter than expected in part due to surprises on food prices. Higher operating costs due to earlier increases to the minimum wage explain the surge in restaurant food prices since the start of the year (+4.5% y/y). Upward pressures on food prices could also be due to the depreciation of the Canadian dollar which is… 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.