Canada's August inflation to take a material trend break

Inflation and growth readings will further inform the debate over risks facing the Canadian economy and monetary policy next week.  

There are still several months for the base effects though the drop in oil prices begin to put upward pressure on year-ago headline CPI inflation readings. 

In the meantime, the focus will remain upon core inflation which has been running at its hottest rate in about seven years. 

"Core inflation has been running between 2.1-2.4% y/y over recent months so it would likely take a material trend break out of that range to matter much in the short-term versus dismissing movement as noise", forecasts Scotia Bank.