Canada: Cooler core inflation gives a bit of encouragement

It looks like the headline increase in prices was more noise than signal. Both traditional and more dynamic measures of core inflation are suggesting that price pressures are cooling off. There does seem to be some light appearing at the end of this long tunnel. Underlying inflationary pressures are softening according to a broad suite of indicators. While the road towards price stability is still a long one, every bit of positive development matters. This has us sticking to our call for the Bank of Canada to hike rates only once more, with a 25bp move in December.