Bank of Canada's Macklem Says Inflation Coming Down Despite April Gain

Bank of Canada Governor Tiff Macklem suggested April's inflation increase - the first in 10 months - was an anomaly and said consumer prices would continue to come down, prompting markets to pare expectations for another hike, Reuters reported. The central bank has been warning Canadians that rates could go higher. April's unexpected acceleration in inflation to 4.4% from 4.3% in March has some economists forecasting a hike later this year. "Inflation has come down. It is coming down. We expect it will continue to come down," Macklem said when asked about the inflation figures published this week, adding that April inflation "did come in stronger than we expected." Before Macklem spoke, money markets had seen an 80% chance for a hike in July. After, that dropped to 60%. Earlier, the Bank of Canada said it was increasingly worried about the ability of households to pay off their debts and is seeing signs of financial stress among some home buyers. Read more.