TD Securities Sees Canadian CPI Rising to 2.9% in July Amid Stable Core Inflation

TD Securities projects that Canada’s headline Consumer Price Index (CPI) will increase to 2.9% year-on-year in July, primarily driven by rising gasoline and food prices, according to FX Street. Despite the uptick in headline inflation, core inflation components excluding food and energy are expected to remain subdued.

Robert Both of TD Securities highlighted that while headline inflation pressures are mounting due to volatile energy and food costs, the underlying inflation trend remains muted. This suggests that broader price increases in the Canadian economy may be contained for the time being.

For Japanese investors and traders, understanding these inflation dynamics is crucial as Bank of Canada (BoC) policy decisions continue to influence North American markets and may impact FX and equity flows relevant to Japan’s export-driven economy.