19 June 2019

However, the general inflation number is highly unstable and it can be pushed up by certain factors. That’s why the data agency also provides core inflation rate, which excludes many segments and gives the average of three other sub-rates.

The core inflation rate reached 2.1%, marking the highest level since 2012.

Such results suggest the central bank will have more reasons not to raise its key lending rate during its meeting in July.

Following the inflation report, investors said they believe there’s a 6% chance of a rate cut next month, Bloomberg says.

“High core inflation supports the opinion that the Bank of Canada will probably keep the rate unchanged”, – Toronto-Dominion Bank economist James Marple noted.

After the news release, the Canadian dollar rose by almost half a cent and then lost part of the gain stopping at 75 cents US.