Canada Braces for Inflation Data and US Tariff Deadline
Canada's mortgage professionals are gearing up for a pivotal week as two economic pressure points converge. On Monday, August 17, Statistics Canada will release the Consumer Price Index (CPI) for July. According to RBC Economics, year-over-year CPI is expected to climb to 2.9% in July, driven by renewed acceleration in energy costs.
Gasoline prices rose at a slower year-over-year rate in June but picked up again in July, averaging approximately 25% above year-ago levels due to ongoing conflict in the Middle East. RBC Economics estimates that food price growth likely eased marginally in July but remained above 3%.
The broader trade environment continues to cloud the Bank of Canada's rate outlook, with economists expecting the central bank to hold rates through 2026. Section 338 tariffs covering roughly 5% of Canada's goods exports are scheduled to take effect on August 19.