Quotes from TD Economis:- Canada headline CPI inflation cooled somewhat in November, advancing by 2.0% y/y compared to the 2.4% spike in October.- The risk of persistently high inflation appears to be dissipating. The falling price of oil is also expected to bring down gasoline and fuel oil prices further in the New Year, thereby pulling total CPI inflation lower. A warmer winter than last year should help do the same for natural gas prices.- Today's release supports our view that the Bank of Canada has not fallen behind the inflation curve. While less slack in the economy and a lower dollar will help to keep core CPI inflation around 2% in 2015, lower energy prices should bring total CPI inflation into the lower half of the Bank of Canada's target range for inflation – between 1% and 2%. As such, we expect the Bank of Canada to stay on the sidelines until the last quarter of 2015.
The material has been provided by InstaForex Company – www.instaforex.com