Canadian inflation cools

Bloomberg

Consumer price inflation cooled as gasoline prices fell by the most since the start of the pandemic, though underlying price pressures will likely push the Bank of Canada to continue delivering aggressive rate hikes.
The consumer price index rose 7.6% in July from a year earlier, Statistics Canada reported in Ottawa. The inflation gauge increased 0.1% from a month earlier, the seventh straight increase. Both numbers matched the median estimates in a Bloomberg survey of economists.
While yearly inflation has possibly peaked, the persistently broad pressures could still prompt the central bank to deliver a 75-basis-point increase to its policy interest rate on September 7.
“It is the third-highest print in the past four decades,” economist David Rosenberg, founder of Rosenberg Research & Associates, said.
on BNN Bloomberg Television. “There’s nothing here — even when you look through the various components — that’s going to knock the Bank of Canada off its aggressive posture.”
Bonds sold off, with the benchmark two-year yield rising more than 5 basis points to 3.293% in Toronto. The Canadian dollar rose to C$1.2888 per US dollar from C$1.2904 before the release.