TD Securities forecasts a rise in Canadian CPI to 3.2% driven by energy costs, though stable core inflation suggests the Bank of Canada will maintain a cautious policy stance.
TD Securities expects Canadian CPI to rise to 3.2% but core inflation remains subdued, limiting BoC reaction and keeping CAD neutral.
TD Securities projects Canada's September headline inflation will climb to 3.2% year-on-year, primarily fueled by rising energy and gasoline costs. Despite the headline increase, core inflation metrics remain anchored near 1.9%, likely tempering the Bank of Canada's policy response.
The increase is primarily attributed to higher energy and gasoline prices, according to TD Securities.
The Bank of Canada is expected to show a limited reaction because core inflation metrics remain subdued near 1.9%.