Wednesday's News Recap: Canadian Inflation Soars in June, Beige Book Downbeat

The key news events of the day included a higher-than-expected June CPI inflation reading in Canada, a significant drop in crude oil supplies in the U.S., and a Beige Book report that said eight of the 12 districts were in weaker shape than six weeks ago. Canada's headline inflation rate jumped 3.1% in June, largely the result of rising fuel prices, according to data released Wednesday by Statistics Canada. The core Consumer Price Index, which leaves out volatile items like energy, mortgages and fresh fruit and vegetables, rose 1.5% in June. The consensus estimate beforehand was for a 2.9% increase in the overall rate and a rise of 1.6% in core. "On balance, this provides the Bank of Canada ammunition for continuing to keep rates steady," noted Charmaine Buskas, senior economics strategist from TD Securities. "It does not... [read full story]