Slight upside risk to Canada's headline CPI - TD Securities

FXStreet (Łódź) - Tim Davis, Vice President and Global Strategist at TD Securities, expects the Canadian all-items CPI for May to increase by 0.2% m/m in May, due in large part to seasonal factors, while the core index is forecast to increase by 0.3% m/m.

Key quotes

"On a year-ago basis headline inflation should remain unchanged at 2.0% while core should nudge higher to 1.5%."

"There is a slight upside risk to headline inflation and if our forecast is realized, both headline and core inflation in Q2 will run ahead of what the Bank of Canada had forecast in the April MPR."