Slowing Inflation Not Enough to Prevent September Interest Rate Hike, Economists Say

Slowing Inflation Not Enough to Prevent September Interest Rate Hike, Economists Say
Gas prices are displayed in Carleton Place, Ontario on May 17, 2022. The Canadian Press/Sean Kilpatrick
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Inflation in Canada finally appears to have peaked, but it nonetheless remains too high to dissuade the Bank of Canada from raising interest rates significantly in September, economists say.

The year-over-year inflation rate slowed to 7.6 percent in July, Statistics Canada reported Tuesday, with the deceleration largely driven by a decline in gas prices even as prices for food, rent and travel continued to rise.