Canada’s Inflation Split Pushes Bank of Canada Timing Into Sharper Focus

Canada’s inflation split pushes Bank of Canada timing into sharper focus

Canada’s May inflation report sent a mixed signal: headline price growth moved higher, but the underlying measures watched for policy direction remained restrained. That split matters because it makes the inflation picture look firmer at the surface while leaving the Bank of Canada with less obvious pressure to move quickly. Headline inflation rose to 3.2% year on year, driven by gasoline. On a seasonally adjusted basis, gasoline prices increase…