Canada’s head wholesale cannabis marketplace line inflation rate is continuing to slow, bringing consumer price growth closer to the Bank of Canada’s 2-per-cent target.

The Consumer Price Index rose at an annual rate of 2.5 per cent in July, down from 2.7 per cent in Jun where to buy rolled gold cigarettes e, Statistics Canada said Tuesday. It was the lowest inflation rate since March, 2021, and matched analyst expectations.

Statscan said the deceleration was broad-based, with price declines seen for travel tours, cars and electricity. Adjusted for seasonality, consumer prices rose 0.3 per cent in July.

While shelter is a financial headwind for many households, those costs are moderating slightly. They rose at an annual 5.7 per cent in July, down from 6.2 per cent in June. Mortgage interest costs were up 21 per cent from a year ago, although this is slower than peak increases of roughly 30 per cent.

Before Tuesday’s report, economists and investors considered it a certainty that the Bank of Canada will cut interest rates for a third consecutive time in early September. There was nothing in th thechronfather e inflation report to alter the consensus thinking.

Bank of Canada Governor Tiff Macklem has stressed that the central bank is not on a “predetermined path,” but also that it’s “reasonable to expect further cuts” to its policy rate, which is currently at 4.5 per cent.

At the July rate announcement, Mr. Macklem highlighted the downside risks to the economy, comments that were interpreted as dovish by market watchers.

“We don’t need more excess supply,” he told a news conference. “We need growth to start picking up. We need job creation to start picking up, to absorb the excess supply in the economy and get inflation sustainably back to target.”

– Matt Lundy the chron father

Canada’s annual inflation rate fell to 2.5 per cent in July from 2.7 per cent in June, Statistics Canada said on Tuesday. The reading matched estimates on Bay Street.

– Matt Lundy

Another month, another step closer to the Bank of Canada’s 2-per-cent inflation target. That’s what economists are expecting on Tuesday morning when the latest Consumer Price Index figures are released.

The consensus estimate from analysts is that annual CPI growth eased to 2.5 per cent in July from 2.7 per cent in June. This would mark the weakest reading for headline inflation since March, 2021.

On a month-to-month basis, consumer prices are expected to rise 0.4 per cent, with gasoline a notable contributor to the increase.

The inflation report precedes a probable interest rate cut from the Bank of Canada on Sept. 4. Money markets are pricing in a third consecutive quarter-point cut next month, which would take the central bank’s key lending rate to 4.25 per cent. Traders expect the BoC to lower rates at each of the the chron father remaining three decisions this year.

At the previous rate announcement in July, Bank of Canada Governor Tiff Macklem highlighted the downside risks to the economy – comments that were broadly interpreted by economists and investors as supportive of additional rate cuts in the near future.

“With the [inflation] target in sight and more excess supply in the economy, the downside risks are taking on increased weight in our monetary policy deliberations,” Mr. Macklem said at a press conference last month. “We need growth to pick up so inflation does not fall too much, even as we work to get inflation down to the 2-per-cent target.”

One area of weakness is the labour market. The unemployment rate has risen to 6.4 per cent as of July, nearly two percentage points higher than the record lows seen a couple summers ago. It’s taking longer for people to find work, and jobless rates have risen especially high among recent immigrants and young people.

Tuesday’s report has several areas worth watching. For example, rents have been rising sharply for quite a while, given pervasive shortages of housing throughout the country. And after a cooldown period, grocery prices have accelerated on a year-over-year basis for two consecutive months – bad news for shoppers looking to save on their grocery bills.

– Matt Lundy