{"id":118868,"date":"2025-09-16T17:25:50","date_gmt":"2025-09-16T13:25:50","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118868"},"modified":"2025-09-16T17:26:32","modified_gmt":"2025-09-16T13:26:32","slug":"canada-inflation-report-august-2025","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/canada-inflation-report-august-2025\/09\/16\/market-updates\/","title":{"rendered":"Canada Inflation Report \u2013 August 2025"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Headline Figures<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Annual CPI:<\/strong> Rose <strong>1.9%<\/strong>, slightly below forecasts of <strong>2.0%<\/strong>, but higher than July\u2019s <strong>1.7%<\/strong>.<\/li>\n\n\n\n<li><strong>Monthly CPI:<\/strong> Fell <strong>0.1%<\/strong>, versus expectations of a 0.1% rise.<\/li>\n\n\n\n<li><strong>Core Inflation:<\/strong>\n<ul class=\"wp-block-list\">\n<li>CPI-median held steady at <strong>3.1%<\/strong>.<\/li>\n\n\n\n<li>CPI-trim eased to <strong>3.0%<\/strong> from <strong>3.1%<\/strong>.<\/li>\n\n\n\n<li>Excluding gasoline, CPI slowed to <strong>2.4%<\/strong> from <strong>2.5%<\/strong> in the prior three months.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Gasoline Prices:<\/strong> +1.4% month-on-month, but still down <strong>12.7% YoY<\/strong> (vs. -16.1% in July).<\/li>\n\n\n\n<li><strong>Shelter Costs:<\/strong> +2.6% YoY (down from 3%), as rent and mortgage costs eased.<\/li>\n\n\n\n<li><strong>Food Prices:<\/strong> +3.4% YoY, with meat prices surging <strong>7.2%<\/strong> after July\u2019s +4.7%.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Market &amp; Policy Implications<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bank of Canada (BoC):<\/strong>\n<ul class=\"wp-block-list\">\n<li>With inflation moderating below expectations, the case for a <strong>rate cut<\/strong> at the September 17 meeting is stronger.<\/li>\n\n\n\n<li>Money markets now price a <strong>93% chance<\/strong> of a 25 bps cut.<\/li>\n\n\n\n<li>Benchmark policy rate is currently at <strong>2.75%<\/strong>, unchanged since March.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Canadian Dollar &amp; Bonds:<\/strong>\n<ul class=\"wp-block-list\">\n<li>CAD firmed slightly to <strong>1.3761 per USD<\/strong> (\u224872.67 U.S. cents).<\/li>\n\n\n\n<li><strong>2-year bond yields<\/strong> edged up to <strong>2.507%<\/strong>, reflecting cautious optimism.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p>While headline inflation ticked up, the softer monthly print and easing core measures indicate <strong>underlying disinflationary pressures<\/strong>, giving the BoC space to restart its easing cycle. However, sticky food inflation and resilient portions of the CPI basket above 3% suggest that underlying price pressures haven\u2019t fully dissipated, meaning the bank may remain cautious about the pace of cuts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Headline Figures Annual CPI: Rose 1.9%, slightly below forecasts of 2.0%, but higher than July\u2019s 1.7%. Monthly CPI: Fell 0.1%, versus expectations of a 0.1% rise. Core Inflation: CPI-median held steady at 3.1%. CPI-trim eased to 3.0% from 3.1%. Excluding gasoline, CPI slowed to 2.4% from 2.5% in the prior three months. Gasoline Prices: +1.4% &hellip;<\/p>\n","protected":false},"author":9,"featured_media":94615,"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":[4707,38,40,37,39,36],"tags":[],"class_list":["post-118868","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-breaking-news","category-commodities-news","category-cryptocurrencies","category-forex-markets","category-global-stock-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118868","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\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118868"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118868\/revisions"}],"predecessor-version":[{"id":118869,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118868\/revisions\/118869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/94615"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}