The Financial Post reports in its Tuesday edition that economists at Canada's biggest banks believe the country's inflation rate cooled for the second month in a row in August, with consensus expectations from Bloomberg surveys for Sept. 20's CPI announcement running at 7.2 per cent, down from the 7.6-per-cent annualized pace in July. The Post's Stephanie Hughes writes that the anticipated decline comes as global supply chain snarls are beginning to ease. Some banks see the rate excluding food and energy products to hold steady at 5.5 per cent. Alongside this, the Bank of Canada's preferred core inflation measures also likely remained elevated. Comparing Canada with its neighbour south of the border, CIBC chief economist Avery Shenfeld noted that the difference in how shelter costs are treated in Canadian inflation figures should have cost pressures excluding food and energy falling faster than the United States. However, Mr. Shenfeld also expects that since the price of goods excluding food and energy is driven upward by some supply chain issues and domestically driven services inflation is likely to peak in the second quarter of next year, core inflation will not dip below 3 per cent until the second half of 2023.
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