Statistics Canada predicts a 2.1% year-over-year August consumer price index increase, keeping inflation below the 3% target.

Statistics Canada will release its August consumer price index today, with economists predicting a 2.1% year-over-year price increase, down from 2.5% in July. This trend keeps inflation below the 3% target, allowing the Bank of Canada to cut interest rates three times this year, with the current key rate at 4.25%. Governor Tiff Macklem has suggested faster cuts may occur if economic conditions worsen. The U.S. Federal Reserve is also expected to announce its first rate cut in four years soon.

September 17, 2024
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