Canada July CPI 7.6% y/y vs 7.6% expected

  • Previously it was 8.1%
  • CPI m/m +0.1% vs +0.1% expected
  • Previous m/m measurement was +0.6% (revised to +0.5%)
  • Excluding petrol +6.6% y/y vs +6.5% earlier
  • Gasoline prices -9.2% vs +6.2% in June
  • Average hourly wage +% vs +5.2% y/y before
  • Energy prices +28.0% vs +38.8% y/y previously
  • Food +7.6% y/y
  • Reception costs +7.0% vs +7.1% y/y before
  • Services +5.7% y/y vs +5.2% previously

Core measures:

  • BOC core 6.1% vs 6.2% previously
  • Median 5.0% vs. 4.9% previously
  • Trim 5.4% vs 5.5% Earlier
  • Common 5.5% vs 4.7% expected (4.6% earlier, revised to 5.3%)

Canadian housing projects were also released and amounted to 275.3k year-over-year compared to 262.1k earlier.

Inflation

Inflation

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country rises over a period of time. It is the rise in the general price level where a particular currency actually buys less than in previous periods. In terms of judging the strength of currencies, and by extension currencies, inflation or measures thereof are extremely influential. Inflation arises from overall money creation. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (as measured by GDP). As such, this generates a demand pressure on a supply that is not increasing at the same rate. The consumer price index then rises, causing inflation. How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies at several levels. This includes purchasing power parity, which tries different purchasing power of each country according to the general price level. This makes it possible to determine the country with the highest cost of living. The currency with the higher inflation therefore loses value and depreciates, while the currency with the lower inflation appreciates in the forex market. also affected. Excessively high inflation rates push up interest rates, causing the currency to depreciate on foreign exchange. Conversely, too low inflation (or deflation) pushes interest rates down, causing the currency to rise in the forex market.

Inflation is defined as a quantitative measure of the rate at which the average price level of goods and services in an economy or country rises over a period of time. It is the rise in the general price level where a particular currency actually buys less than in previous periods. In terms of judging the strength of currencies, and by extension currencies, inflation or measures thereof are extremely influential. Inflation arises from overall money creation. This money is measured by the level of the total money supply of a specific currency, for example the US dollar, which is constantly increasing. However, an increase in the money supply does not necessarily mean inflation. What leads to inflation is a faster increase in the money supply relative to the wealth produced (as measured by GDP). As such, this generates a demand pressure on a supply that is not increasing at the same rate. The consumer price index then rises, causing inflation. How Does Inflation Affect Forex? The level of inflation has a direct impact on the exchange rate between two currencies at several levels. This includes purchasing power parity, which tries different purchasing power of each country according to the general price level. This makes it possible to determine the country with the highest cost of living. The currency with the higher inflation therefore loses value and depreciates, while the currency with the lower inflation appreciates in the forex market. also affected. Excessively high inflation rates push up interest rates, causing the currency to depreciate on foreign exchange. Conversely, too low inflation (or deflation) pushes interest rates down, causing the currency to rise in the forex market.
Read this term remains high and the market expects another 75 basis points from the Bank of Canada.

Canadian gasoline prices fell 9.2% in June, while in the US they fell 7.6%. That trend has continued so far in August, but what could catch the attention of the Bank of Canada is the broadening of core inflation in services and through common CPI.

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