Live Updates: New inflation figures released today

Update on inflation in Canada

Welcome to the Globe live blog for the release of July inflation figures.

Canada’s annual inflation rate reached 3.3 percent in July.

The August 2023 inflation report will be released today at 8:30 a.m. ET.

Find updates from our journalists below.

7:20 a.m.

A look at markets ahead of August inflation report

Canadian investors will know August inflation before trading begins, with economists expecting increased price pressures, partly due to rising energy costs. In July, the annual inflation rate rose to 3.3 percent from 2.8 percent in June. June marked the first time the annual inflation rate fell within the Bank of Canada’s target range for the first time since March 2021.

“Canadian inflation is poised to accelerate for a second straight month after hitting a two-year low in June,” Robert Kavcic, senior economist at BMO, said in a note.

“Our call would send the annual rate up six ticks to 3.9 percent, a four-month high,” he said. “The Bank of Canada’s core inflation indicators are expected to remain roughly stable in August… Overall, this report will keep the Bank of Canada on alert for rising inflation expectations and will do nothing to dissuade the belief that underlying price pressures will take time to ease. .”

Find out what else investors can expect today.

–Terry Weber


Inflation report to be released today

Economists expect inflation to accelerate again to around 4 percent last month, reversing earlier progress as gasoline prices pushed inflation higher.

Statistics Canada’s August report on the consumer price index, due to be released Tuesday, is expected to show the annual inflation rate rose for a second straight month.

Canada’s inflation rate fell to 2.8 percent in June, falling within the Bank of Canada’s 1 percent to 3 percent target range for the first time since March 2021. Celebrations linked to the Reaching this benchmark were, however, short-lived as inflation ticked over the following month.

The Bank of Canada has left the door open to further rate hikes, in part because it expects it will take some time to bring inflation back to 2 percent. But economists say the recent slowdown in the economy will likely convince the central bank to stay away.

– The Canadian Press

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