Canadian inflation, as measured by the Consumer Price Index (CPI), rose by 2 per cent compared to the same time last year, matching the increase in the previous month. Excluding the impact of lower energy prices, the CPI was up 2.5 per cent year-over-year. The Bank of Canada’s three measures of trend inflation continued to average 2 per cent in July.
In B.C., CPI slowed to 2.1 per cent in July compared to a year ago, due to a combination of a decline in prices for gasoline, clothing and footwear, and household furnishings.
With national inflation right at 2 per cent, the Bank of Canada will likely remain on hold at its next meeting in September. Complicating this however, are uncertainty around deteriorating global trade conditions between the U.S. and China, and the Federal Reserve’s recent rate cut.