Overview

• Australia's inflation rate climbed to 4% in May, exceeding expectations and raising the likelihood of an RBA rate hike.
• The Australian dollar and bond yields surged as traders anticipated potential rate increases.
• Canada's inflation rate increased to 2.9% in May, casting doubt on a July rate cut by the Bank of Canada.
• Economists express concerns over core inflation measures and their impact on future monetary policy.
• Central banks in both countries face pressure to balance inflation control with economic growth.