Canada June CPI +8.1% y/y +% vs +8.4% y/y expected

• Largest increase since 1983
• Prior was 7.7%
• CPI m/m +0.7% vs +0.9% expected
• Prior m/m reading was +1.4%
• Excluding gasoline +% y/y vs +6.3% prior
• Gasoline prices +6.2% vs +12.0% in May
• Average hourly wages +5.2% vs +3.9% y/y prior
• Energy prices +38.8% vs +34.8% y/y prior
• Shelter costs +7.1% vs +7.4% y/y prior
• Services +5.2% y/y vs +5.2%

Core measures:

• BOC core 6.2% vs 6.1% prior
• Median 4.9% vs 4.9% prior
• Trim 5.5% vs 5.4% prior
• Common 4.6% vs 4.2% expected (3.9% prior)

Canadian PPI data:

• Producer prices -1.1% m/m vs +1.8% prior
• Prices +14.3% y/y vs +15.0% prior (revised to 15.7%)

The Canadian dollar is a bit lower on this report but it comes at the same time as a dip in oil prices. However with gasoline prices down around 10% in July, a negative reading is brewing this month and that could lead the BOC to signal that it sees the finish line. Currently the market is pricing in 3.61% at year end from 2.50% now. That may be too aggressive if 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 slows.