Canada’s Inflation Rate Falls to 2.5%, Paving Way for Another Interest Rate Cut

Governor of the Bank of Canada Tiff Macklem participates in a news conference on the bank's interest rate announcement, and the release of the quarterly Monetary Policy Report, in Ottawa, on July 24, 2024. The Canadian Press/Justin Tang

Canada’s annual inflation rate fell to 2.5 percent last month, matching economists’ forecasts and solidifying expectations for a third consecutive interest rate cut in September.

Tuesday’s consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.