TD Securities forecasts Canadian inflation accelerated in May due to higher energy costs and seasonal factors.
Canada’s May Consumer Price Index is projected to climb to 3.1% year-on-year, up from prior levels, driven by rising energy prices and seasonal adjustments. The month-on-month increase is expected at 0.8%.
Analysts cite firming energy costs as a key contributor to the uptick, alongside broader price pressures. The forecast aligns with recent trends of persistent inflation in the Canadian economy.
Markets will watch the data closely for implications on Bank of Canada policy, though no immediate reaction was specified.