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MNI: Canadian Inflation Is Slowest In More Than Three Years

Statistics Canada saw a broad-based deceleration led by travel and autos.

Canadian consumer prices advanced at the slowest pace in more than three years in July, a broad-based move led by travel services, autos and even moderation in elevated housing costs, the kind of move economists have said makes it likely the central bank will keep cutting interest rates. 

Statistics Canada's consumer price index slowed to a 2.5% pace in July from a year earlier from June's 2.7%, which is also one-tenth slower than the economist consensus. The agency said it was a broad-based moderation, the kind of slowdown Bank of Canada officials have said they wanted after cutting borrowing costs for a second meeting in July and saying more moves are justified if prices keep moving back to target.

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Canadian consumer prices advanced at the slowest pace in more than three years in July, a broad-based move led by travel services, autos and even moderation in elevated housing costs, the kind of move economists have said makes it likely the central bank will keep cutting interest rates. 

Statistics Canada's consumer price index slowed to a 2.5% pace in July from a year earlier from June's 2.7%, which is also one-tenth slower than the economist consensus. The agency said it was a broad-based moderation, the kind of slowdown Bank of Canada officials have said they wanted after cutting borrowing costs for a second meeting in July and saying more moves are justified if prices keep moving back to target.

Keep reading...Show less