Canada inflation eased in July, on its track to target

August 22, 2024

Canada CPI rose 0.4% in July over the month and 2.5% over the year which is the lowest reading since April 2021. Yearly CPI has passed 3% target level in February 2024 and has been going down steadily since then (see chart). At the same time Core CPI has been below 2% target since March 2024 (see chart).
Price pressure is slowing steadily and that will help BoC to continue policy easing in September with another rate cut as it did in June and July slashing rate by 25 basis point each time to the level of 4.5%. Recent price dynamic makes situation comfortable for police-makers to keep easing monetary policy as recent labor market data showed some signs of recession looming.
⭐️Summary:
Inflation eased in July and is on the course to 2% target. This will help BoC to keep rate cuts as it now more concerned with possible slowdown in the economy.