CPI data up next
A handful of global developed-market central banks have found ways to stimulate growth but inflation is elusive everywhere.
So far this year, the sizzling growth in Canada is one of the big surprises but in the bigger picture the reflation story has flopped.
Today we find out if at least one global economy can begin to put it all together. Canadian May CPI is due at the bottom of the hour (1230 GMT) and expectations are modest. The consensus is for a 1.5% y/y rise in headline inflation. The BOC also looks at a trio of core measures that are also starting at low points. CPI common was +1.3% previously, trim was 1.3% previously and median was 1.6%, all y/y.
Those numbers highlight the lack of urgency for the BOC to hike and yet the market is pricing in a 56% likelihood of higher rates on July 12.
