June's rise in the official 'core' inflation figure, to 2.0% from 1.8%, mainly reflects transportation base year effects. With inflation expectations well anchored and economic growth likely to remain below the economy's 2% potential rate, we anticipate that inflation will remain subdued for quite some time. Accordingly, we think that the Bank of Canada's tightening bias is misplaced.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services