Canada’s Inflation Rate Tumbles to 3.4%, but Forecasters Still Expect July Rate Hike

Canada’s Inflation Rate Tumbles to 3.4%, but Forecasters Still Expect July Rate Hike
The prime minister of Canada Justin Trudeau speaks during a joint press conference with Ukrainian president Volodymyr Zelenskyy in Kyiv, Ukraine, on June 10, 2023. Alexey Furman/Getty Images
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Canada’s inflation rate tumbled in May as price shocks caused by the Russian invasion of Ukraine have been mostly absorbed, but economists are still expecting the Bank of Canada to move ahead with another rate hike next month.

Statistics Canada reported Tuesday the annual inflation rate fell to 3.4 percent in May, largely due to lower gasoline prices compared to a year ago.