The Globe and Mail reports in its Monday edition that economists expect Canada's "core" inflation rate to resume
its climb when the latest
report arrives this week. The Globe's David Parkinson writes the jury will likely remain out on
whether consumer prices have
yet embarked on a sustainable
upward march.
Expectations are for Statistics Canada's consumer
price index report, to be
released Friday, to
show the core measure increased
to 1.8 per cent over the year in August, resuming its rise
after easing to 1.7 per cent in July.
Prior to July, core CPI had risen
in six of seven months, from just
1.1 per cent last November to 1.8
per cent in June.
However, total CPI inflation,
which saw an even more
rapid rise (from just 0.7 per cent
last October to 2.4 per cent in
June) before taking a step back
in July, is expected to hold steady
at 2.1 per cent in August, due
largely to declines in gas
prices.
CIBC economist Nick Exarhos says,
"Some of the transitory factors
highlighted by the Bank of Canada
as culprits in inflation's rapid
gains earlier in the year have
abated, but better growth and
weak readings from a year ago
have prevented inflation from
dropping off meaningfully."
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