July’s annual inflation rate rose above June’s 2.8% and surpassed economist expectations, signaling persistent price pressures.
Canada’s annual inflation rate climbed to 3.0% in July, up from 2.8% in June and above market forecasts. The increase marks the first acceleration in four months, driven by higher shelter and food costs.
Economists had anticipated a slower rise, with consensus estimates hovering near 2.9%. The prior month’s 2.8% print had suggested easing price pressures, but July’s data reverses that trend.
Markets are now pricing in a higher likelihood of further Bank of Canada rate hikes to curb inflation.