TORONTO (Reuters) -Canada’s annual inflation rate rose 1.9% in August as petrol prices on a yearly basis fell at a slower pace than the previous month and food prices were up slightly, data showed on Tuesday.
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COMMENTARY
DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK
“I think it cements a cut tomorrow.”
“All the core gauges month-over-month, seasonally adjusted at an annualized rate came in quite soft here … We’ve had several months of softening core inflation.”
ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS
“Inflation remained largely unthreatening in August, making the expected Bank of Canada interest rate cut tomorrow a relatively easy decision.”
“With core measures of inflation likely to cool further in the months ahead thanks to the slack building up in the economy and the removal of many retaliatory tariffs on September 1st, we not only expect a 25bp cut tomorrow but also a further reduction at the October meeting.”
DOUG PORTER, CHIEF ECONOMIST AT BMO CAPITAL MARKETS
“This was a low karma result, I would say this is an acceptable result; it is not too strong for much of a concern, so I do think this keeps the Bank of Canada on track for a rate cut tomorrow. I mean it is not 100% (the rate cut), but it is fairly certain. I don’t see this report as a block to BOC for moving on rates.”
(Reporting by Fergal Smith and Divya Rajagopal; Editing by Caroline Stauffer)
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