Canada Inflation Set to Rise Amid New US Tariffs

Canada's Consumer Price Index for July is expected to show a slight increase in headline CPI, rising to 2.9% from 2.8% in June.

The growth is attributed to a reacceleration in energy prices, with oil prices bouncing higher in July due to conflict in the Middle East disrupting transportation through the Strait of Hormuz.

However, pass-through from higher energy prices to broader consumer prices has remained limited, and core measures' prices are expected to hold around similar rates, near the 2% target.

The Bank of Canada's preferred median and trim measures are also expected to remain stable, while food price growth likely edged lower but remains above 3%.