Canada: CPI expected to have grown 0.1 percent in August – Wells Fargo

Canadian consumer price inflation data are scheduled to be released today and analysts at Wells Fargo expect it to have grown 0.1 percent month over month in August.

Key Quotes

“Last week, the Bank of Canada (BoC) raised rates in a move that was somewhat anticipated by markets, but generally not expected by most economists. Economic data coming out of our northern neighbor have been stronger than expected, leading the BoC to judge that the faster rate of growth to be “more broadly based and self-sustaining.” The September rate hike likely takes another hike in October off the table.”

“The headline rate of CPI inflation in Canada is just 1.2 percent at present, near the low end of the target range. We expect CPI to have grown 0.1 percent month over month in August and 1.4 percent year over year. Also on the docket for next week is Canadian retail sales data for July. Retail sales were up 7.3 percent on a year-ago basis in June.”