Core Viewpoint - Canada's overall inflation rate at the end of last year was slightly higher than expected, influenced by a federal tax relief policy from the previous year [1] Group 1: Inflation Data - The Consumer Price Index (CPI) decreased by 0.2% month-on-month but increased by 2.4% year-on-year, while economists had anticipated a stable year-on-year inflation rate of 2.2% [1] - The core inflation rate, excluding food and energy, rose to 2.5% year-on-year [1] Group 2: Key Indicators - The key CPI median and trimmed CPI values, which are closely monitored by the Bank of Canada, decreased from 2.85% in November to 2.6%, marking the slowest growth rate since December 2024 [1]

Core Viewpoint - Canadian inflation remains high, delaying interest rate cuts according to Dominique Lapointe from Manulife Investment Management [1] Inflation Analysis - The Bank of Canada is hesitant to overlook temporary price increases caused by retaliatory tariffs due to uncertainty regarding the extent of cost pass-through and other inflationary factors [1] - Despite high inflation, Canada has not yet faced recessionary pressures that would compel the central bank to adopt a more accommodative stance [1] Future Projections - Lapointe anticipates that rising unemployment, an expanding output gap, and the clearer temporary impact of tariffs on inflation will ultimately lead the central bank to implement two more interest rate cuts during the current cycle [1]

Core Viewpoint - The door for a rate cut by the Bank of Canada in July has been completely closed due to persistent cost pressures in the economy, as indicated by the June inflation report [1] Economic Indicators - The three-month annualized growth rate of the core consumer price index in June reached 3.5%, marking a six-month high [1] - The cost pressures are attributed to a weaker Canadian dollar and retaliatory tariffs on U.S. imports [1]