Slowing Inflation Not Enough to Prevent September Interest Rate Hike, Economists Say
Inflation in Canada finally appears to have peaked, but it nonetheless remains too high to dissuade the Bank of Canada from raising interest rates significantly in September, economists say.
The year-over-year inflation rate slowed to 7.6 percent in July, Statistics Canada reported Tuesday, with the deceleration largely driven by a decline in gas prices even as prices for food, rent and travel continued to rise.
Economists had pointed to the nearly 40-year high of 8.1 percent in June as the likely high water mark for the overall inflation rate, which had previously increased every month since June 2020.
In a further indication that price gains are slowing, the agency said July’s month-over-month increase was the smallest since December 2021….