Inflation in Canada: Latest data released

OTTAWA-

Statistics Canada will release its consumer price index report for August this morning.

Economists polled by Reuters expect the report to show a price increase of 2.1 percent compared to a year ago, compared to an increase of 2.5 percent in July.

Inflation remained below three percent throughout 2024, giving the Bank of Canada room to start cutting interest rates, which it has done three times so far this year.

The Bank of Canada’s key interest rate is currently 4.25 percent.

Governor Tiff Macklem recently indicated that the central bank is prepared to cut interest rates more quickly if inflation or the economy slows faster than expected.

In addition, the US Federal Reserve is expected to announce its first interest rate cut in four years on Wednesday.

This report by The Canadian Press was first published September 17, 2024.