Canadian Inflation Reaches 40-Month Low

2024-08-23 03:28:30

(MENAFN- Yolo Wire) Canada’s %Inflation rate slowed to 2.5 percent, year over year, in July, cementing another rate cut by the Bank of Canada. The print matched forecasts and was broad-based. Lower prices for travel tours, passenger vehicles and electricity drove inflation lower. While shelter costs remain the main driver of inflation due to significantly higher rents and mortgage payments, shelter price growth slowed in July to 5.7 percent year-over-year, down from 6.2 percent in June.

For the month of July the consumer price index rose 0.4 percent, following a 0.1 percent decline in June. Driving the monthly gain was higher gasoline prices. Year over year, gasoline prices rose at a faster pace in July compared with June, partially due to reduced supply amid a refinery shutdown in the Midwestern United States. Purchases of passenger vehicles and clothing items were the main downward contributors for the month.

The Bank of Canada has already cut interest rates twice this year and is widely expected to do so again at its next interest rate announcement on September 4.

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