Canada CPI Expected to Rise in September, Adding Pressure to BoC Easing Plans
September's Canadian CPI data is expected to rise, potentially pressuring the Bank of Canada ahead of its October rate decision.Summary
Statistics Canada is set to release September's Consumer Price Index (CPI) figures, which will inform the Bank of Canada's (BoC) upcoming interest rate decision, expected to be a 25 basis point cut to 2.25% on October 29. Economists forecast the headline CPI to increase by 2.3% year-over-year in September, exceeding the BoC's target, following a 1.9% rise in August. The central bank will also scrutinize its preferred core inflation measures, which have remained elevated. Analysts are cautious due to the lingering threat of US tariffs potentially increasing domestic prices. If the CPI reading is stronger than expected, it could reinforce concerns about tariff-related cost pass-through, making the BoC more cautious and likely offering short-term support to the Canadian Dollar (CAD) against the USD/CAD pair.
(Source：BeInCrypto)