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Canada CPI inflation 4.0% y-o-y (consensus 3.8) in Aug-23

- Canada's CPI inflation surpassed expectations to reach 4.0% y-o-y in August 2023, indicating the highest growth since April 2023.
- Other measures of inflation, such as trimmed-mean and core CPI, also indicate substantial price increases in the Canadian economy, albeit at relatively lower levels.

Canada hourly wage growth 4.89% y-o-y in Aug-23

- Canada's hourly wage growth in August 2023 decreased to 4.89% year-on-year, the lowest since June 2023, from the previous rate of 5.02%.
- Despite the slight dip, the current wage growth remains 1.92 percentage points above the long-run average, indicating a continued outpacing of historical norms.

Canada unemployment rate 5.5% in Aug-23

- Canada's unemployment rate remained unchanged at 5.5% in August 2023, indicating stability in the labor market.
- The unemployment rate is slightly above the one-year average but remains below the long-run average, suggesting a relatively favorable employment situation in Canada.

Bank of Canada: Sep-23

• The Bank of Canada's unsurprising decision to maintain the 5% overnight rate seeks to balance global economic factors amidst China's economic deceleration and strengths observed in the US and Europe.
• With core inflation staying elevated, the Bank's choice to hold the rate reflects a proactive approach to manage potential entrenched inflationary pressures, while remaining agile to future adjustments.
• Facing domestic challenges, the Canadian economy leans on government spending for support. In light of these factors, the Bank's decision showcases prudence while signaling preparedness to recalibrate based on evolving economic conditions.