The annual rate of inflation in Canada fell to 2.5 percent in July, signalling a possible interest rate cut in September. The Consumer Price Index (CPI) rose 2.5 percent on a year-over-year basis in July, the slowest rate of increase since March 2021, and down from a 2.7 percent gain in June 2024.
Statistics Canada reports this deceleration in headline inflation was broad-based, stemming from lower prices for travel tours, passenger vehicles, and electricity. On a monthly basis, the CPI rose 0.4 percent in July, after falling 0.1 percent in June.
Sarah McGoldrick
