Canada July CPI 7.6% y/y vs 7.6% expected

• Prior was 8.1%
• CPI m/m +0.1% vs +0.1% expected
• Prior m/m reading was +0.6% (revised to +0.5%)
• Excluding gasoline +6.6% y/y vs +6.5% prior
• Gasoline prices -9.2% vs +6.2% in June
• Average hourly wages +% vs +5.2% y/y prior
• Energy prices +28.0% vs +38.8% y/y prior
• Food +7.6% y/y
• Shelter costs +7.0% vs +7.1% y/y prior
• Services +5.7% y/y vs +5.2% prior

Core measures:

• BOC core 6.1% vs 6.2% prior
• Median 5.0% vs 4.9% prior
• Trim 5.4% vs 5.5% prior
• Common 5.5% vs 4.7% expected (4.6% prior, revised to 5.3%)

Canadian housing starts were also released and were at 275.3k annualized compared to 262.1k prior.

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 remains high and the market is expecting another 75 bps from the Bank of Canada.

Canadian gasoline prices fell 9.2% in June while they fell 7.6% in the US. That trend has continued so far in August but what might get the Bank of Canada's attention is the broadening in core inflation in services and via CPI common.