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Latest surge in travel prices should soon be reversed

The further rise in core inflation in July was largely due to a surge in travel services prices, much of which should be reversed after the summer. Nevertheless, that rise in core inflation, the continued strength of broader housing-related activity, and the Op-ed from Governor Tiff Macklem this week all support the idea that the Bank will enact another large policy rate hike in September, of 75 bp.  

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