Featured
article
- Get link
- X
- Other Apps
Inflation Rise in June Likely Halts BoC Rate Cut Plans
Canada’s annual inflation rate edged up to 1.9% in June, according to Statistics Canada, marking a slight increase from May’s 1.7%. The uptick, driven by higher prices for new and used vehicles, durable goods, and clothing, has tempered expectations of a rate cut from the Bank of Canada (BoC) at its upcoming July meeting.
Gasoline prices remained nearly flat, but the slower decline compared to last year contributed to the overall inflation increase. Meanwhile, grocery inflation eased, with fresh vegetable prices falling for the first time since 2021.
Core inflation metrics—closely watched by the BoC—showed mixed signals. The CPI-median rose slightly to 3.1%, while CPI-common and CPI-trim held steady. These figures suggest underlying price pressures remain persistent, reinforcing the central bank’s cautious stance.
With economic uncertainty heightened by new U.S. tariffs and uneven growth, analysts believe the BoC will likely hold its policy rate steady in July, opting for a wait-and-see approach until inflation trends become clearer.
Popular Posts
Smart Savings for a Sharp School Start: Canadian Parents’ 2025 Guide
- Get link
- X
- Other Apps
Trump's Six Words: "I'm Going to Stop the Wars"
- Get link
- X
- Other Apps
Comments
Post a Comment