Stubborn Core Inflation in June Likely Cements Calls for Bank of Canada Rate Hold

Underlying inflation remained stubbornly hot in June, leading financial markets and many economists to firm up calls for a third straight interest rate hold from the Bank of Canada later this month.

Statistics Canada said Tuesday that the annual pace of inflation accelerated to 1.9 percent in June, up from 1.7 percent in May and largely in line with economists’ expectations.