Canadian Dollar: Inflation risks and BoC stance – TD Securities

TD Securities’ economist Robert Both expects Canadian CPI to rise to 3.2% year-on-year in September, driven mainly by higher Energy and Gasoline prices, while core measures such as CPI-trim and median remain near 1.9%. The subdued core profile should limit Bank of Canada reaction, even as new inflation forecasts in the October MPR are upgraded for headline CPI.