BREAKING NEWS ON INFLATION – CRUSHES ESTIMATES..and not in a good way.
Canada’s rate of inflation re-accelerated by more than expected for the second straight month, due largely to:
– higher gasoline prices
– shelter prices up ( which includes mortgage interest costs)
– BUT price growth for groceries slowed.
-> Annual inflation: 4.0%, up from July’s 3.3% (consensus: 3.8%)
-> Monthly inflation: Up 0.4% (consensus: 0.2%)
-> Average core inflation (y/y): 4.0% vs. 3.75% in July
-> Average core inflation (3-month): 4.5% vs. 3.5% in July
Tuesday’s numbers highlight the challenge in the current phase of the inflation battle to get inflation down to 2%
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