PREVIOUS TRADING DAY EVENTS 18 July 2023

Canadas Consumer Price Index CPI monthly figure showed an increase of just 0.10. Overall, it rose 2.8 year over year in June. The forecast inflation figure was to drop to 3.0 from 3.4 in May. The Bank of Canada has 1 to 3 control range for the first time since March 2021. The bank targets 2 inflation.

Inflation is definitely moving in the right direction, but were seeing stickier and more persistent core measures, said Michael Greenberg, senior vice president and portfolio manager at Franklin Templeton Investment Solutions.

The average of two of the Bank of Canadas BoC core measures of underlying inflation, CPImedian and CPItrim, came in at 3.8 compared with 3.9 in May.

The Bank of Canadas preferred measures of core inflation, which exclude significant moves in individual categories, show that underlying price pressures remain sticky, said Royce Mendes, head of macro strategy at Desjardins Group.

Canadas Finance Minister Chrystia Freeland highlighted to reporters the fact that inflation was lower in Canada than in any other G7 country.

The Bank of Canada last week raised rates to a 22year high of 5.0, its tenthrate increase since last March and expects inflation to remain around 3 over the next year before dropping to the banks 2 target by mid2025.

Source httpswww.reuters.comworldamericascanadasinflationratedrops27monthlowfoodpricesstillelevated20230718

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