Canada May CPI +7.7% vs +7.4% y/y expected

• Largest increase since January 1983
• Prior was 6.8%
• CPI m/m +1.4% vs +1.0% expected
• Excluding gasoline +6.3% y/y vs +5.8% prior
• Gasoline prices +12.0% in May
• Average hourly wages +3.9% y/y
• Energy prices +34.8% y/y
• Shelter costs +7.4% y/y
• Services +5.2% y/y vs +4.6% prior, led by hotels and restaurants
• Full report

Core measures:

• Median 4.9% vs 4.4% prior
• Trim 5.4% vs 5.1% prior
• Common 3.9% vs 3.5% expected (3.2% prior)

This report solidifies the case for 75 basis points at the upcoming BOC and makes an argument for even more. The core measures are broadening and the Bank of Canada rhetoric signals they will tackle 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 full-on. The looming problem is that the Canadian housing market is busting.