Canada's July Inflation Hits 3% as Gasoline Prices Jump 25.7%
Updated
Updated · The Globe and Mail · Aug 17
Canada's July Inflation Hits 3% as Gasoline Prices Jump 25.7%
3 articles · Updated · The Globe and Mail · Aug 17
Summary
Canada’s annual inflation rate rose to 3.0% in July from 2.8% in June, a touch above expectations and the last major price reading before the Bank of Canada’s Sept. 2 decision.
Gasoline prices climbed 25.7% from a year earlier, up from 20.5% in June, after a U.S.-Iran ceasefire unraveled and renewed global energy volatility pushed oil costs higher.
Airfares rose 12% and travel tours accelerated as higher jet fuel costs and FIFA World Cup demand lifted travel prices, though economists expect those pressures to fade from August data.
Grocery inflation cooled to 3.1% from 3.9%, helping offset July’s price pressure, but economists said energy costs, a weak Canadian dollar and fertilizer disruptions could keep food prices elevated.
Markets still see nearly 99% odds of the Bank of Canada holding its 2.25% policy rate next month, with economists arguing trade risks and possible U.S. tariffs on about 5% of Canadian exports outweigh July’s inflation uptick.