Canada's Inflation Hits 2% in August, Lowest Since 2021

In August, Canada's annual inflation rate dropped to 2%, the lowest since February 2021. Core prices also fell to a 40-month low, while monthly consumer prices decreased by 0.2%. Gasoline, clothing, and phone services contributed to the decline, though shelter costs, including rent and mortgage interest, continued to rise. The Canadian dollar fell slightly to C$1.1361 per U.S. dollar. Analysts expect further rate cuts from the Bank of Canada.