June CPI data shows cooling price pressures, with core measures dipping below 2%, reinforcing expectations for steady Bank of Canada policy.
Canadian inflation eased to 2.8% year-over-year in June, down from prior levels, as energy prices retreated from earlier highs. Core inflation measures, including CPI-trim and CPI-median, fell below the Bank of Canada’s 2% target, while inflation breadth remained limited.
The decline aligns with expectations following a drop in oil prices, but broader price pressures also softened more than anticipated. Excluding food and energy, inflation stayed below target, reducing concerns about persistent price growth.
The data supports the Bank of Canada’s outlook for stable rates through 2026, as contained inflation and steady economic growth reduce urgency for policy shifts.