Canada's Inflation Rate Sees Slight Uptick in July

The Canadian inflation rate rebounded in July of 2026, reaching 2.9% according to recent data. This is up from 2.8% in the previous month and slightly above market expectations of 2.9%. However, it remains below the post-Iran-war peak of 3.2% seen two months prior.

The gasoline price inflation rate accelerated to 25.7% in July from 20.5% in the previous month, tracking wholesale oil and refined product markets globally. This increase is attributed to the renewed conflict between Iran and the US, which has triggered blockades on tankers in the key region.

The core inflation rates tracked by the Bank of Canada also saw a slight increase, with the median core rate at 2% and the trimmed-mean rate at 1.9%. These figures indicate that while inflation is still above target, it remains within manageable levels for now.