Canada's July CPI Expected to Rise to 2.9% Year-Over-Year

The Bank of Canada's July Consumer Price Index (CPI) is expected to rise to 2.9% year-over-year, according to Continuum Economics.

This forecast comes after June's CPI slipped to 2.8%, down from May's 3.2%. The increase in gasoline prices is cited as the main driver of this correction.

However, the Bank of Canada's core rates are expected to remain unchanged at 1.9% for CPI-Median, 1.8% for CPI-Trim, and 2.6% for CPI-Common.

The economy showed momentum in Q2, but June's data was not broad-based, with the World Cup likely contributing to a 0.6% increase in recreation, education, and reading expenses.