Canadian Inflation Soars to 5 Year High On Gas Prices

Headline inflation in Canada rose to a 5 year high of 3.4% in July, fueled by higher energy costs, while the core CPI held steady at 1.5%. Upside inflation risks have become a growing concern for the BoC, but the recent decline in oil prices may help the central bank to focus on downside growth risks as economic activity cools.