Canadian headline inflation held at 3.0 percent year over year in August, matching July, but the underlying number worsened: inflation excluding gasoline rose to 2.4 percent from 2.2 percent. The Bank of Canada held its rate at 2.25 percent on September 2 anyway, citing a broadening recovery. The bond market has priced a different view: the Government of Canada five-year yield has climbed nearly half a point since an August 25 low of 3.22 percent, to 3.60 percent, as the Federal Reserve's hike widened the policy gap.
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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