According to Jinshi, although Canada's overall inflation returned to the central bank's 2% target in August, the continued slowdown in its preferred core indicator raised expectations that inflation was under control.
The closely watched average of the adjusted CPI and the median CPI rose 2.35% year-on-year last month after retreating to 2.55% in July. This was the lowest level since April 2021, when core inflation was 2.35%.
The measure is below the central bank’s latest forecast for average inflation of 2.5% this quarter.