Overview

• Statistics Canada said annual CPI slowed to 1.7% from 1.9% in June, coming in slightly below forecasts.
• Falling gasoline prices drove the cooldown, while grocery inflation accelerated to 3.4% year over year from 2.8% in June.
• The Bank of Canada’s preferred core measures held around 3% in July, signaling persistent underlying price pressure.
• Shelter inflation edged up to 3.0% as rent growth quickened, with lower mortgage interest costs helping to limit the increase.
• July marked a fourth straight month below the central bank’s 2% midpoint target, with the next rate decision set for Sept. 17.