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Economics

Canadian Inflation Cools But Hot Core Keeps Up Rate Pressure

  • Yearly rate falls to 7.6% on steep drop in gasoline prices
  • Momentum will likely push Macklem to keep hiking sharply
A customer refuels at a gas station in Toronto, Ontario, Canada, on July, 29.

A customer refuels at a gas station in Toronto, Ontario, Canada, on July, 29.

Photographer: Della Rollins/Bloomberg
Updated on

Consumer price inflation cooled as gasoline prices fell by the most since the start of the pandemic, though underlying price pressures will likely push the Bank of Canada to continue delivering aggressive rate hikes.

The consumer price index rose 7.6% in July from a year earlier, Statistics Canada reported Tuesday in Ottawa. The inflation gauge increased 0.1% from a month earlier, the seventh straight gain. Both numbers matched the median estimates in a Bloomberg survey of economists.