A year earlier the relationship ran the other way, with headline inflation sitting about a point below the CPI-trim core measure. The reversal is driven by gasoline, which was 22.8% higher than a year before in the August release, while core measures stayed at or below 2%. The gap matters because markets are pricing a meaningful chance of a Bank of Canada hike on October 28 even though underlying inflation is subdued.
This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.
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