Canada August CPI 7.0% y/y vs 7.3% expected

• Prior was 7.6%
• CPI m/m -0.3% vs -0.1% expected
• Prior m/m reading was +0.1%
• Excluding gasoline +6.3% y/y vs +6.6% prior
• Gasoline prices -9.6% vs -9.2% in July
• Average hourly wages +5.4%
• Energy prices +% vs +28.0% y/y prior
• Food +10.8% vs +7.6% y/y prior
• Shelter costs +6.6% vs +7.0% y/y prior
• Services +5.5% y/y vs +5.7% prior
• Full report

Core measures:

• BOC core 5.8% vs 6.1% prior
• BOC core m/m 0.0% vs +0.5% prior
• Median 4.8% vs 5.0% prior
• Trim 5.2% vs 5.4% prior
• Common 5.7% vs 5.6% expected (5.5% prior)

This is an early sign of cooling inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term from the first central bank to hike. The internals of the report look consistent with the headline, though the uptick in CPI common is notable. On net, there was negative inflation in August and the core was flat. Food is a big problem in Canada and globally though, especially in places where people can't afford to pay more.

The Bank of Canada is widely expected to hike 50 bps on October 26 to lift the rate to 3.75%. From there, we could see the central bank indicate perhaps another 25 bps and then some time on the sidelines.