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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, The Canadian Press reported that Canada’s inflation rate over the past year increased to 1.9 percent in June, rising from 1.7 percent in May.
  • This increase followed three months of inflation below 2 percent, driven by higher prices for automobiles, clothing, footwear, and durable goods.
  • Statistics Canada showed the consumer price index rose 0.1 percent monthly in June, used vehicle prices increased for the first time in 18 months, and strong job gains occurred last week.
  • The 0.1 percent CPI monthly rise matched analyst forecasts, while money markets set just over 15 percent odds for a rate cut before the Bank of Canada's July 30 decision.
  • These figures suggest the Bank of Canada will likely keep rates steady later this month pending more data on inflation and economic trends.
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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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