The stronger than expected pick-up in both headline and core inflation indicates that inflation will overshot the Bank of Canada's previous forecast assumptions. Since a large part of this is due to the pass-through effects from a lower Canadian dollar, however, it won't come as a complete surprise to the Bank, since it has already flagged this as an upside risk to inflation.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.