Sometimes disappointing economic news on jobs can be a positive outcome for the inflation watch. Investors seemingly shrugged off the 7,000 Canadian job losses for the May 2018 employment report. This disappointing economic news instead focused headlines away from the decade-low jobless rate of 5.8% and acceleration of wage growth. Indeed, the 3.9% year-on-year increase for average hourly earnings is the highest in nine years. As the chart below indicates, the job market is tightening and with it wage growth since mid 2016 have rose.
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