Bank of Canada Unfazed by July Inflation Rebound

The Bank of Canada's interest rate decision is expected to remain unchanged on September 2, despite July's inflation rebound. The annual inflation rate rose to three per cent in July, up from 2.8 per cent in June, mainly due to global energy price volatility.

Gas prices were the primary contributor to this increase, rising by 25.7 per cent year-over-year, while higher jet fuel prices also contributed to a 12 per cent hike in airfare costs.

Randall Bartlett, deputy chief economist at Desjardins, noted that inflation is currently tracking below three per cent and is expected to decline further as gas prices ease and other one-off pressures recede.