RBC economists expect inflation will have slowed in May
BNN Bloomberg
A pair of RBC economists predict a drop in next week’s monthly inflation reading, but say it would take a major surprise to stop the Bank of Canada from hiking interest rates in July.
Statistics Canada is due to report Tuesday on Canadian consumer price index (CPI) data for the month of May.
Analysis from economists Nathan Janzen and Claire Fan published Friday said the inflation print, along with other releases on gross domestic product and business outlook, is a “critical” set of economic data that will influence the Bank of Canada’s next interest rate moves, after it hiked its key lending rate to 4.75 per cent this month.
The economists said they expect to read that headline price growth fell in May to 3.6 per cent, thanks to lower energy prices, after ticking up slightly to 4.4 per cent in April.
