Canada: CPI showing improvement
It was just a few days ago that the US CPI data saw a resounding back door to the figure, which is also the child of the Federal Reserve‘s firm monetary policies to the tune of raising rates by 75 basis points stood at 8.5%.
The US inflation figure reinvigorated the markets and also the cryptocurrency world, analysts had expected a result of 8.7% well 0.2% higher than that found and this is behind the relief rally cashed in by investors following the release of the figure.
The news that its cousins to the north also performed well in terms of commodity costs and inflation puts the US mainland in pole position for victory over the markets’ main enemy.
Inflation in Canada rose from 8.1% to 7.6% in July, the figure puts the northern lands back on track after June’s figure had sealed a negative record that had not been touched in 39 years in the country’s economy.
The 0.5% improvement bodes well for markets already galvanized by the performance of the US a few days earlier.
The economic situation in the world
If we were to analyze the situation from a macroeconomic point of view, it can be observed that in general in the world, economies rich in raw materials and know-how are succeeding, alongside incisive policies of their central banks, in solving the long-standing problem of inflation, mainly due to a shorter supply chain and lower production costs.
Canada is known to be a country rich in mineral resources and both fossil and non-fossil fuels, food resources are also substantial, and all this contributes effectively to combat the cost of the population’s main commodities of consumption.
However, in contrast to what has been said above, despite the fact that the country has its own gas fields, the price of gas does not show any signs of decreasing and this is probably due to the higher costs that companies have had to bear in recent months.
In fact, liquid methane gas in particular has seen a 5% increase in price and the trend unfortunately seems to know no rest as also found on futures.