Canada\u2019s Consumer Price Index (CPI) climbed to 1.9% year-over-year in June, up from 1.7% in May, according to Statistics Canada\u2019s Tuesday release. The uptick fell short of economists\u2019 expectations of a 2% rise, but core inflation measures remained elevated, signaling persistent price pressures and reducing the likelihood of a Bank of Canada (BoC) interest rate cut on July 30.
Month-over-month, CPI edged up 0.1%, with a seasonally adjusted increase of 0.2%. Gasoline prices, though down 13.4% from last year due to the carbon tax removal, contributed less to deflation than May\u2019s 15.5% drop, driving the headline inflation increase. Prices for cars, furniture, and durable goods also rose, with durable goods up 2.7% annually (from 2% in May) and passenger vehicles up 4.1%.
Core inflation metrics underscored ongoing pressures: CPI-median rose to 3.1% from 3%, while CPI-trim held steady at 3%. BMO chief economist Douglas Porter noted, \u201cUnderlying inflation remains stubbornly strong,\u201d citing robust shelter costs\u2014rent up 4.7% and mortgage costs up 5.6%\u2014and trade-related pressures on goods like clothing (up 2% from 0.5% in May). Grocery inflation slowed to 2.8% from 3.3%, driven by cheaper fresh vegetables like onions (-10.3%) and cucumbers (-18.3%).
The data, combined with recent strong job gains, makes a July rate cut unlikely, with some commentators suggesting trade negotiations and labor market trends will shape the BoC\u2019s 2025 easing path. A significant slowdown in core inflation is needed for a September cut, absent a sharp economic downturn tied to ongoing Canada-U.S. tariff uncertainty.
Excluding energy, CPI rose 2.7%, highlighting broader economic pressures. Markets remain focused on upcoming bank earnings and tech sector performance, with NVIDIA\u2019s strength lifting sentiment, as investors weigh these inflation dynamics against potential trade disruptions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Canada\u2019s Consumer Price Index (CPI) climbed to 1.9% year-over-year in June, up from 1.7% in May, according to Statistics Canada\u2019s Tuesday release. The uptick fell short of economists\u2019 expectations of a 2% rise, but core inflation measures remained elevated, signaling persistent price pressures and reducing the likelihood of a Bank of Canada (BoC) interest rate …<\/p>\n","protected":false},"author":13,"featured_media":97291,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6827,49,37,36],"tags":[],"class_list":["post-116606","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=116606"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116606\/revisions"}],"predecessor-version":[{"id":116610,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/116606\/revisions\/116610"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/97291"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=116606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=116606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=116606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}