The Financial Post reports in its Thursday, Aug. 22, edition that inflation in Canada was firmer than expected last month, keeping underlying price pressure right at the central bank's target and giving policymakers one less reason to consider immediate interest rate cuts. A Bloomberg dispatch to the Post reports that annual consumer price inflation was 2 per cent in July, matching June's pace, Statistics Canada said Wednesday. Economists had expected inflation to slow to 1.7 per cent. Core inflation unexpectedly ticked up slightly to 2.03 per cent. Stronger inflation dynamics in Canada are one reason why economists and markets are anticipating fewer cuts, and a slower pace of reductions, by the Bank of Canada than the U.S. Federal Reserve. Markets are pricing in just one rate cut in Canada over the next six months, versus three for the Fed, even though some analysts have begun to speculate a cut could take place as early as the next rate decision in September due to trade tensions. Underlying price pressure has been remarkably stable near the BOC's 2-per-cent target for well over a year. Scotiabank says the economy continues to hum along making the September rate cut call "very marginal at best."