The Globe and Mail reports in its Monday edition that economists expect the pace of inflation picked up in June as the Bank of Canada continues to search for tariff effects in the price data. A Canadian Press dispatch to The Globe says Statistics Canada will report Consumer Price Index data for June on Tuesday. Tiff Macklem, the Governor of the central bank, said last month that monetary policy-makers were noticing some "unusual volatility" in the inflation figures. He also said underlying inflation could be "firmer" than the central bank first thought, and might be reflecting higher costs from tariffs between Canada and the United States. Royal Bank of Canada expects the annual pace of inflation accelerated to 1.9 per cent in June. RBC senior economist Claire Fan said she expects core inflation will still be stubborn in June, hovering at the top end of the central bank's target band of 1 to 3 per cent. She said food inflation is one area that RBC expects will continue to push up the consumer price index. While the Bank of Canada and other economic watchers have been scouring price data for evidence of pressure from the U.S. trade dispute, Ms. Fan said she is not expecting "a lot of tariff impact to show up yet."
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