According to a survey of experts conducted by BNN Bloomberg, inflation in Canada is expected to rise to 1.8–2.0% in July. This is due to increasing prices of goods subject to tariffs imposed by the US. CIBC and RBC experts also cite high food and transportation costs as factors putting pressure on overall prices.
Meanwhile, analysts have noted a slight decline in inflation in the services sector, particularly in housing rentals. However, official data has not yet reflected these changes, so the overall price level continues to climb. Because of this, the Bank of Canada is considering not only inflation data, but also business and consumer surveys to more accurately assess the impact of tariffs.
Ahead of the Bank of Canada's July 30 meeting, this data will be key for rate decisions. Following unexpected employment growth in June, BMO analysts believe the regulator will maintain current rates until at least September to ensure a steady decline in inflation.