Interest rate hike likely in October says TD economist

by Steve Randall on 20 Aug 2018

The cost of living was higher in July as energy prices and interest rates added to household expenditure.

Data from Statistics Canada show that the Consumer Price Index was up 3% on an annual basis following June’s 2.5% increase.

The largest influence on the CPI was the continued rise in energy costs, up 14.7% year-over-year, with gasoline up 25.4% and fuel oil and other fuels rising more than 28%.

The mortgage interest index was up 5.2% in the 12 months to July on the impact of the BoC’s interest rate rises.

There were also notable increases in the cost of transportation, air travel, and travel tours; and telephone services.

In all provinces, prices rose more in July on a year-over-year basis compared with the previous month.

The Bank of Canada's preferred measures of core inflation remained stable in July.

“The relative stability of core inflation measures may give the Bank of Canada some solace,” commented TD Economics’ senior economist James Marple. “Still, with an economy beating expectations and a range of indicators pointing to limited excess capacity, maintaining stable inflation is likely to require further rate hikes by the central bank with the next one likely coming in October.”

Post a Comment

Most Trending News

Fixed-rate mortgages have gone up, but it doesn’t matter
News

News of a fixed rate increase might inspire consumers driven by fear of being priced out of the market in Canada.

Read More
Post-COVID return to the office depends on where you live
News

Even before COVID-19 moved us all to work from home, reevaluations of office space were already underway, but not nearly to the extent they are now.

Read More
Millions in delayed closing compensation left unclaimed
News

This consultant and real estate investor said that a third of new construction properties built every year in Ontario have legitimate claims for reimbursement, but they aren't taken advantage of.

Read More