Canada: Pace of headline CPI may slow - BBH

Canada reports May CPI and the headline pace may slow due to the base effect, but the risk is that the core ticks higher, according to the research team at BBH.  

Key Quotes

“Following yesterday's stronger than expected retail sales report, any upside surprise today would further fan ideas that the Bank of Canada could hike rates as early as the July 12 meeting.  The market appears to have discounted a little more than a 50% chance of a hike at that meeting.  The Canadian dollar is practically flat in the week as yesterday's recovery recouped the week's earlier losses.  Initial US dollar support is seen near CAD1.3200 and then CAD1.3165.”