Canada's June consumer price index report is expected to show a flat monthly non-seasonally adjusted headline reading on Monday, offering little change to the outlook for monetary policy, according to Scotiabank Economics.
Statistics Canada is scheduled to release June CPI at 8:30 a.m. ET. Scotiabank expects the annual rate to be unchanged at 3.2%, Derek Holt, vice president of capital markets economics, said in a note.
June's CPI is unlikely to significantly change the Bank of Canada's policy outlook ahead of the Sept. 2 monetary decision, with more data including jobs and economic growth yet to come as well as trends in commodity markets, Holt said.
Seasonal trends usually lift June prices, but lower gasoline prices and easing travel-related inflation are expected to offset those gains, Scotiabank said. Shelter costs should continue to add upward pressure, Holt said.
The focus will remain on core inflation measures, with trimmed mean and weighted median CPI
"rebounding from a temporary soft patch," Holt said.