Canadian Inflation
· Headline CPI came in as expected at 4.7%, while core inflation was 1.8% (a touch below the expectation of 1.9%)
· With the Bank of Canada forecast of 4.8% for Q4, today’s numbers should do little to ease concerns over inflation nor should it stoke these fears further
· The market is pricing in 4-5 hikes next year with the first hike coming in March/April. Today’s print should do little to alter these expectations.
