Gas Prices Push Inflation Rates Up Again

Canadian inflation rates are expected to rise again in July, reversing a cooling trend seen in June. According to a poll of economists, the annual rate of inflation is predicted to tick up to 2.9 percent last month after dropping to 2.8 percent in June.

The expected increase is attributed to rising gas prices, which had previously decreased due to peace talks in the Iran war and subsequent drop in global oil prices. However, renewed hostilities in the Middle East have sent gas prices higher again.

The July inflation figures will be crucial for the Bank of Canada's next interest rate decision on September 2. The central bank has maintained its policy rate at 2.25 percent in six consecutive decisions, balancing volatile global energy prices and US tariffs affecting the economy.