Canada June CPI 2.8% y/y versus 3.0% expected

<ul><li><a href="https://www.forexlive.com/news/canada-april-cpi-44-yoy-versus-41-expected-20230516/" target="_blank" rel="follow">Prior </a>was 3.0%</li><li>CPI m/m % vs +0.3% expected</li><li>Prior m/m reading was 0.4%</li><li>Gasoline prices -% vs -18.3% y/y in prior month </li><li>Gasoline
prices % m/m vs -0.8% prior month</li><li>Ex gasoline +4.0% y/y vs +4.4% prior</li><li>Food +8.3% y/y vs +8.3% y/y prior</li><li>Mortgage interest costs 30.1% y/y vs 4.9% increase in May</li><li>Goods inflation +1.4% vs +2.1% y/y prior</li><li>Services inflation +4.2% vs +4.9% prior</li></ul><p>Core measures:</p><ul><li>BOC core y/y 3.2% vs 3.5% expected (prior 3.7%)</li><li>BOC core m/m -0.1% vs +0.4% prior</li><li>Median 3.9% vs 4.0% prior</li><li>Trim 3.7% vs 3.8% prior</li><li>Common 5.1% vs 5.2% prior</li></ul><p>There's no reason for the Bank of Canada to continue to raise interest rates. USD/CAD is up to 1.3218 from 1.3200 on this data but some of that move is as a result of broad US dollar strength on a strong US retail sales report released at the same time.</p><p>Separate PPI data from Canada:</p><ul><li>-0.6% m/m vs -0.2% expected</li><li>Prior PPI -1.0% (revised to -0.6%)</li></ul><p>Here is CIBC after the report:</p><p>"We continue to think that the Bank of
Canada is overshooting what was necessary in order to bring price pressures under control, and see inflation dipping
below 2% in the second half of next year."</p>

This article was written by Adam Button at www.forexlive.com.