Canada’s Inflation Ticks Up to 1.9% in June, Putting Spotlight on BoC Rate Call
Updated on
Published on
Canada’s inflation rate accelerated to 1.9 % year‑over‑year in June, up from May’s 1.7 %, Statistics Canada said Tuesday. Higher prices for passenger vehicles, furniture, and apparel offset a smaller drop at the gas pump, nudging the headline CPI closer to the Bank of Canada’s 2 % target.
Core gauges that strip out volatile items remained sticky near 3 %, while CPI excluding energy advanced 2.7 %. Economists note that durable‑goods inflation quickened as inventories tightened and import tariffs lifted costs, signalling that price pressures are not yet fully tamed despite softer grocery bills.
With the next BoC decision due July 30, traders dialled back odds of an immediate rate cut to 13 %, from 27 % before the release. Scotiabank’s Derek Holt said the data “reinforces a hold,” and BMO’s Doug Porter warned that persistent core readings “complicate the path to easing.” The Canadian dollar held steady around 1.37 per U.S. dollar, while bond yields edged higher on expectations the central bank will stay patient.
