Instant view: Canada inflation cools to 40-month low of 2.5% in July
2024.08.20 09:16
TORONTO (Reuters) – Canada’s annual inflation rate cooled to a 40-month low of 2.5% in July, matching forecasts, and core inflation measures eased as well, data showed on Tuesday, keeping the Bank of Canada on track to cut interest rates again in September.
Analysts polled by Reuters had forecast inflation to cool to 2.5% from 2.7% in June.
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COMMENTARY
ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS
“Canadian inflation continued to ease in July, keeping the door to further interest rate cuts wide open.”
“With inflationary pressures fading away but concerns about the weakening labour market growing, we continue to forecast three further 25 bp (basis point) cuts by the Bank of Canada at the remaining meetings this year.”
