Canada's annual rate of inflation unexpectedly rose in May, putting a July interest rate cut by the Bank of Canada into question.
Statistics Canada announced Tuesday that the annual rate of inflation as measured by the consumer price index - rose to 2.9 per cent in May, up from 2.7 per cent in April. It was the first increase after four straight months of falling inflation.
A consensus of economists surveyed by Bloomberg had expected May's inflation would fall to 2.6 per cent.
BMO chief economist Douglas Porter said the Bank of Canada is now less likely to cut rates at its next meeting July 24.
"No bones about it, this is not what the Bank of Canada wanted to see at this point, and clearly shaves the odds of a followup July rate cut," Porter said. "With inflation back on a bumpy path, the outlook for BoC moves is similarly bumpy. For now, our official call remains that the next BoC rate cut will be in September, and this report does nothing to move that needle."
Pedro Antunes, chief economist at the Conference Board of Canada, said the increase caught many observers off-guard.
Denne historien er fra June 26, 2024-utgaven av Toronto Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Allerede abonnent ? Logg på
Denne historien er fra June 26, 2024-utgaven av Toronto Star.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Allerede abonnent? Logg på
![Trump's near-death fatal for Biden](https://reseuro.magzter.com/100x125/articles/29971/1769965/2hZpPvZ411721297428409/TRUMPS-NEARDEATH-FATAL-FOR-BIDEN.jpg)
Trump's near-death fatal for Biden
The hottest MAGA fashion trend can be purchased at a medical supply shop.
![Tuning up for Shrek' musical](https://reseuro.magzter.com/100x125/articles/29971/1769965/UVC9HRn5O1721297333915/TUNING-UP-FOR-SHREK-MUSICAL.jpg)
Tuning up for Shrek' musical
Music director details his job for this revised and more intimate adaptation
'Shogun,' 'The Bear' lead Emmy nominees
\"The Bear\" went on a tear at Wednesday morning's Emmy nominations with a comedy-series record 23, and \"Shogun\" led all nominees with 25 in a dominant year across categories for FX.
![TV stars to headline new Coal Mine Theatre season](https://reseuro.magzter.com/100x125/articles/29971/1769965/59Rfxr12-1721297048774/TV-STARS-TO-HEADLINE-NEW-COAL-MINE-THEATRE-SEASON.jpg)
TV stars to headline new Coal Mine Theatre season
Pair who cut their teeth in theatre return for 'Infinite Life,' 'A Case for the Existence of God'
![Can snubs beat Olympians again?](https://reseuro.magzter.com/100x125/articles/29971/1769965/gw1eUioHZ1721296935711/CAN-SNUBS-BEAT-OLYMPIANS-AGAIN.jpg)
Can snubs beat Olympians again?
WNBA heads to break with big all-star weekend, showdown with U.S. team
Chelsea to discipline Fernandez for racist chant
Club teammate slams video from Argentina's celebration
![House with best views of British Open is up for sale](https://reseuro.magzter.com/100x125/articles/29971/1769965/sWPvZLn5m1721296496644/HOUSE-WITH-BEST-VIEWS-OF-BRITISH-OPEN-IS-UP-FOR-SALE.jpg)
House with best views of British Open is up for sale
An estimated 250,000 golf fans will pour into Royal Troon to watch the likes of Scottie Scheffler, Rory McIlroy and Tiger Woods at the British Open.
Chirping Canadians help inspire MacIntyre
TROON, SCOTLAND Originally on the media schedule for Monday, Robert MacIntyre finally did his pre-Open news conference Wednesday afternoon.
![Winners and losers from all-star week in Texas](https://reseuro.magzter.com/100x125/articles/29971/1769965/tEI0ALY4F1721295903556/WINNERS-AND-LOSERS-FROM-ALLSTAR-WEEK-IN-TEXAS.jpg)
Winners and losers from all-star week in Texas
The all-star game is an exhibition. Nobody really cares who wins.
![Always one wager from a major scandal](https://reseuro.magzter.com/100x125/articles/29971/1769965/m-RIVu0OX1721295806933/ALWAYS-ONE-WAGER-FROM-A-MAJOR-SCANDAL.jpg)
Always one wager from a major scandal
When you consider the way the baseball season began - with news L.A. Dodgers star Shohei Ohtani, the most compelling player on the planet, was enmeshed in an ugly betting scandal - it's been a relatively quiet all-star break for Rob Manfred, the commissioner of Major League Baseball.