Canada: CPI is forecast to increase by 0.6% m/m - TDS

Research Team at TDS, suggests that higher gasoline and auto prices will combine with a regulated hike in the price of electricity is likely to reinforce Canada’s underlying inflation in May.

Key Quotes 

“The all-items CPI is forecast to increase by 0.6% m/m, which will be offset by a base year effect to keep inflation unchanged at 1.7%. Core prices should advance by 0.3% m/m while core inflation eases to 2.1% y/y. With the Bank of Canada focused on the outlook for growth, this print is not expected to have a lasting impact on monetary policy.”