Economists forecast Canada’s annual inflation rate rose to 2.9% in July, above the Bank of Canada’s target, driven by energy prices and US tariffs.
Canada’s July Consumer Price Index is expected to show annual inflation accelerated to 2.9%, up from June’s 2.8%, according to economist forecasts. The monthly increase is projected at 0.7%, reflecting persistent price pressures amid geopolitical volatility and rising crude oil costs.
The Bank of Canada’s core inflation measure, excluding food and energy, is also seen rising to 2.2% year-over-year from 2.1% in June. The central bank’s preferred gauges—CPI-Common, Trimmed Mean, and Median—slowed in June but remain above or near the 2% target.
Markets will scrutinize the data following the BoC’s decision to hold rates at 2.25% in July, as inflation trends could influence future policy moves. US tariffs and domestic economic slack add further uncertainty to the outlook.