CAD: Headline inflation may tick up, but core likely to be stable – BBH

By FXStreet Research Team at BBH, suggests that Canada’s headline inflation may tick up, but the core rate is likely to be stable and match the six-month average of 2.0%.

Key Quotes

“When transitory factors like energy and the exchange rate pass, the Bank of Canada sees underlying inflation running at 1.7%. The Canadian dollar was among the strong currencies in the February through April period. During that period short-term interest rates (implied yield of the June BA futures) trended higher. This ended May 3, and the current phase, be it a technical correction or a trend reversal, does not appear to be over as the economic data do not look sufficient to stop it.”
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Source:: FX Street