Although the annual rates of core inflation remain elevated, the three-month annualised rates of CPI-trim and CPI-median dropped back to 2.5% in December. Elevated inflation expectations mean that the Bank of Canada will probably still raise interest rates further next week, but the CPI data suggest that a smaller 25 bp hike is the most likely outcome.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.