Canadian inflation rose in August, Statistics Canada reported Tuesday.

The annual rate of inflation climbed to 1.9 per cent from 1.7 per cent in July.

Many economists, however, expected inflation to come in slightly higher at two per cent in August.

The cooler-than-predicted inflation numbers landed a day before the Bank of Canada’s scheduled interest rate announcement . Early reactions by some economists indicate they are continuing to bet that the bank will cut the rate on Wednesday morning.

As of last week, economists were forecasting the central bank to cut the policy rate by 25 basis points, bringing it to 2.5 per cent from its current 2.75 per cent.

“The Bank of Canada should have room to cut at its meeting tomorrow,” said TD economist Andrew Hencic, in a note to clients on

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