INSTANT VIEW-Canada's annual inflation rate in May accelerates to 3.6%
TORONTO, June 16 (Reuters) - Canada's annual inflation rate accelerated to 3.6% in May, up from a year-over-year increase of 3.4% in April, due to both the base-year effect and rising prices for shelter and vehicles, Statistics Canada said on Wednesday.
Analysts polled by Reuters had expected the annual rate to rise to 3.5% in May.
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Market reaction: CAD/
Link: https://www150.statcan.gc.ca/n1/daily-quotidien/210616/dq210616a-eng.htm?HPA=1
COMMENTARY
DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK
"The whole base-effect narrative is getting pretty tired. We're dealing with durable month-over-month increases that could be supply-chain driven in Canada and could be more persistent that what they are judging. But the interesting thing is we're not getting a reopening effect here like they are maybe in the U.K. and the U.S. There's something deeper going on in terms of underlying pressures."
"The amazing thing is if you're getting relatively hot month-over-month numbers like this in lockdown, just wait until we start to reopen the economy and potentially get even greater price pressures." (Reporting by Jeff Lewis Editing by Denny Thomas)
