Canada Headline CPI Seen Rising to 2.9%, Core Inflation Remains Low

According to TD Securities' Robert Both, Canada's headline Consumer Price Index (CPI) is expected to rise to 2.9% year-over-year in July due to higher gasoline and food prices.

The core measures of CPI-trim and CPI-median are projected to stay around 1.85%, which is below the Bank of Canada's forecasts, reinforcing a benign underlying inflation backdrop.

This suggests that the focus should be on core rather than oil-driven headline moves.