Canada's annual inflation rate eased to 1.7% in July from 1.9% in the prior month as lower year-on-year gasoline prices kept the consumer price index low, data showed on Tuesday.

The pace of inflation in Canada cooled last month, offering some hope the central bank will resume lowering interest rates to help revive a sluggish economy being held down by trade uncertainty.

Canada’s inflation rate fell by slightly more than expected in July to 1.7 per cent, which economists say could pave the way for the Bank of Canada to resume cutting interest rates.

Out of 10 Canadian provinces, six saw prices rising at a slower year-over-year pace in July compared with June. Nova Scotia’s inflation held steady. Quebec, Prince Edward Island and Newfoundland and Labrador saw higher inflation in July, with the latter experiencing the most acceleration, mainly due to higher electricity prices.

The Canadian dollar hit its lowest in almost three weeks against its U.S. counterpart on Tuesday as oil prices fell and cooler domestic inflation data raised expectations the Bank of Canada would cut interest rates in the coming months.

TORONTO (Reuters) -Canada's annual inflation rate in May was unchanged from the previous month at 1.7% as a drop in gasoline costs continued to keep the overall index stable while prices of ...

The latest Canada Fixed Income Insights report from FTSE Russell states that “Canada’s economic activity remained resilient so far, with business and consumer confidence withstanding tariff uncertainty” but that the Bank of Canada maintained its steady hand, keeping policy on hold amid underpinning inflation pressures.

The inflation rate in Canada decreased to 1.7% in July from 1.9% in June of 2025. The Consumer Price Index in Canada increased 0.3% in July 2025 over the previous month. Core consumer prices in Canada increased 2.6% in July 2025 over the same month in the previous year.

OTTAWA (Reuters) -Canada's annual inflation surprisingly slowed in March to 2.3%, three notches below the prior month, largely helped by lower gasoline and travel tour prices, data showed on Tuesday.

Inflation eased slightly in July, but core measures remain sticky, leaving economists doubtful the Bank of Canada will change course in September.