Rosenberg Says May Inflation Data Offer Little Support for Bank of Canada Hawks

08:18 AM EDT, 06/23/2026 (MT Newswires) -- Rosenberg Research said Tuesday that Canada's May inflation data offered little support for a more hawkish Bank of Canada stance, noting that only 38.6% of the core consumer price index basket is running above the central bank's 2% target.

That compares with nearly 80% at the peak of the inflation cycle and a long-term average of 49%, according to Rosenberg Research.

Some market players noted concern over a nearly 0.3% monthly rise in Canada's May core inflation, which excludes food and energy, and which posted the highest reading this year, pointed out Rosenberg. However, a broader measure that strips out energy-sensitive components, such as airfares and travel services, points to a much softer gain of around 0.15% on the month, with the annual rate just less than 1.6%.

"Not much to really be concerned about because there is no evidence of the energy shock broadening out into the pricing system, generally speaking," according to Rosenberg.

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