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Canada's annual inflation rate in June slightly up to 1.9%

CANADA, JUL 15 – Headline inflation rose to 1.9% year-over-year in June, driven by higher food and transportation costs, influencing Bank of Canada’s monetary policy decisions, economists said.

  • On July 15, 2025, Statistics Canada announced that the country's inflation rate for June reached 1.9 percent, marking the third consecutive month it remained below the 2 percent threshold.
  • This increase followed predictions and reflects factors including higher prices for automobiles, clothing, and footwear amid ongoing tariff-driven trade uncertainties.
  • Durable goods prices rose 2.7 percent year-over-year in June led by a 4.1 percent increase in passenger vehicle prices, while gasoline prices fell 13.4 percent year-over-year.
  • The consumer price index increased 0.1 percent month-over-month, matching forecasts, and strong June jobs data diminished market expectations for a July interest rate cut.
  • The Bank of Canada will announce its policy decision on July 30 and is expected to hold rates steady while monitoring inflation and trade uncertainty impacts.
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Canada’s inflation rises to 1.9% in June — What it could mean for Bank of Canada interest rate

Here’s what led to the rise in Canada’s inflation number and what it could mean for the next Bank of Canada interest rate announcement.

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FXStreet broke the news in on Tuesday, July 15, 2025.
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