Canada’s inflation rate fell to 2.5% in July, paving way for another BoC rate cut

Canada’s annual inflation rate fell to 2.5 per cent in July, largely driven by lower prices for travel tours, passenger vehicles and electricity.

It was the lowest inflation rate since March, 2021, and matched analyst expectations. It also brings consumer price growth even closer to the Bank of Canada’s 2-per-cent target.

The next Bank of Canada interest rate announcement is on Sept. 4.