Josh Nye, the senior economist at Royal Bank of Canada (RBC), notes that Canada’s headline CPI ticked lower to 1.9% year-over-year while core inflation remains steady at 2%.

• “Headline inflation crept lower over the last three months as consumers got a break on gasoline prices over the summer. Meanwhile, underlying inflation continues to hum along at 2%, making the Bank of Canada the envy of its global peers.
• With the Fed set to lower borrowing costs again today (and potentially leave the door open to another cut) the BoC might just end the year with the highest policy rate in the G7. Inflation would be a key reason for that. For consumers, the combination of steady inflation and accelerating wage growth is good news. Of course, other pressures like housing affordability aren’t captured well in the CPI, so not all households will be feeling an increase in purchasing power.”