🇨🇦❗️Cable FX Macro Weekly Note: Canada Aug. Consumer Prices

**As seen in Risk In The Week 09/15/23, subscribe at cablefxm.co.uk/reports

Canada headline inflation rebounded in July to 3.3% Y/y from 2.8%, the metric came above the consensus median of 3.0%. Canada median core CPI rose by 3.7% Y/y, the trim core increased to 3.6%. The 3-month average of the core metrics fell to 3.49% from the prior 3.91%. StatsCan said that mortgage interest contributed the most to the headline CPI Y/y. On a monthly basis, food prices accelerated to 0.4% from 0.1%, shelter prices rose to 0.7% from 0.5%, and services prices jumped to 1.0% from 0.1%. The median of economists’ forecasts anticipates Canadian consumer prices to rise above the BoC’s target band at 3.8% Y/y this year, the projection was recently revised up 1/10 of a percent, according to data compiled by Bloomberg. Analysts at TD Securities flagged that wage growth's three-month annualized average ticked up in August, they noted that this is likely to delay inflation moving back to target. On the prospects of persistent inflation and a potential pickup in activity, the desk at Goldman Sachs said that the BoC is probably lifting rates one last time before year-end.