Canada’s inflation rate rose to 1.9 per cent in August, increasing by less than economists had forecasted and solidifying expectations of an interest rate cut on Wednesday.

Statistics Canada reported on Tuesday that the annual inflation rate rose from 1.7 per cent in July. The acceleration in headline inflation was driven by a small annual increase in gasoline prices in August relative to July.

The Bank of Canada will have a close eye on Tuesday’s consumer price index report as it gears up for its interest rate announcement on Wednesday. Economists widely expect the central bank will resume cutting interest rates as U.S. tariffs slow economic growth.

“With core measures of inflation likely to cool further in the months ahead thanks to the slack building up in the economy and the remov

See Full Page