Reported 8 months ago
Canada's annual inflation rate unexpectedly rose to 2.9% in May, surpassing analyst expectations and reducing the likelihood of a Bank of Canada rate cut in July. The increase was driven by higher prices for services, with cellular services, travel tours, rent, and air transportation leading the growth. The acceleration in core inflation measures also surprised analysts, with CPI-median and CPI-trim edging up in May. This unexpected inflation rise has shifted money markets' expectations of a rate cut in July to about 45%, down from over 70%.
Source: YAHOO