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Canada’s Inflation Hits 2% Target, Sparking Talk of Future Rate Cuts



Canada's inflation rate dropped to 2% in August, reaching the Bank of Canada's target after over a year of interest rate hikes. Lower gasoline prices helped curb inflation, though core inflation excluding gasoline remained at 2.2%. Despite this progress, Canadians may still feel the pinch, as prices for essential items like groceries remain high. 


Mortgage interest and rental costs continue to weigh heavily on household budgets. Economists now predict interest rate cuts, with the central bank set to meet in October to determine the next move, possibly reducing rates by 25 or 50 basis points.






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