Ben Bernanke and the Federal Reserve may be less worried about inflation than they are the growth and employment picture now, but our Canadian friends up north seem to have little to worry about on the inflation front. This is rather interesting considering the rise in metals and energy prices, particularly as Canada is a resource-rich nation.
The consumer price index rose by 1.2% in August versus 1.3 in July. This matches a low from May and the expectation on the headline was said to be 1.3%. The annualized core inflation rate came in at 1.6% in August versus market expectations of about 1.5%.
Canada's August inflation rate showed higher auto and food costs, but declines elsewhere saved the day. The core inflation rate, which excludes food and energy, was slightly higher than expected.
With Canada having strong credit ratings and with it being such a rich nation in metals and resources, the fact that it is our largest trading partner in many industries matters here in the United States as well.
JON C. OGG
Filed under: 24/7 Wall St. Wire, Commodities & Metals, Economy, International Markets