Canada's Inflation Rate Expected to Tick Up to 2.9 per cent in July

Statistics Canada is set to release fresh inflation figures for July on Thursday morning. Economists expect the annual rate of inflation ticked up to 2.9 per cent last month after cooling sharply to 2.8 per cent in June, according to LSEG Data & Analytics.

The reprieve Canadian drivers experienced at the gas pumps in June as peace talks in the Iran war progressed and reined in global oil prices likely reversed course last month due to renewed hostilities in the Middle East.

This increase in inflation is a concern for the Bank of Canada, which will take this data into consideration before its next interest rate decision on September 2. The central bank has held its policy rate steady at 2.25 per cent in six consecutive decisions as it tries to balance volatile global energy prices and U.S. tariffs hampering the economy.