Canada’s Inflation Rate Falls to 2.5%, Paving Way for Another Interest Rate Cut

Canada’s annual inflation rate fell to 2.5 percent last month, matching economists’ forecasts and solidifying expectations for another interest rate cut in September. Tuesday’s consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower. Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments. The federal agency noted, however, that shelter price growth slowed last month to 5.7 percent year-over-year, down from 6.2 percent in June. Inflation has remained below three percent since January and has steadily trended lower, highlighting the significant progress made in the fight against high inflation....