July’s annual inflation rate climbed above June’s 2.8% print and surpassed economist expectations, signaling persistent price pressures.
Canada’s annual inflation rate rose to 3.0% in July, up from 2.8% in June and above the consensus forecast. The increase marks the first acceleration in four months, driven by higher shelter and food costs.
June’s inflation reading had eased to 2.8%, the lowest since March 2021, fueling hopes of a sustained slowdown. Economists had anticipated a modest uptick to 2.9% for July, but the actual print suggests underlying price pressures remain.
Markets are closely watching the Bank of Canada’s next move, with the central bank having paused rate hikes in recent meetings.