The Globe and Mail reports in its Wednesday edition that Canada's inflation rate increased slightly to 1.9 per cent in August from 1.7 per cent in July, mainly due to a smaller decline in gasoline prices. The Globe's Nojoud Al Mallees writes that this came in lower than expected and suggests the Bank of Canada may cut interest rates for the first time in six months on Wednesday. CIBC economist Andrew Grantham said "inflation remains unthreatening," noting that core measures of inflation, which gauge underlying price pressures, have decelerated slightly. He said this is not an obstacle for the BOC to cut interest rates. He is forecasting a 25-basis-point move. Traders now see about a 93-per-cent chance of a quarter-percentage-point cut on Wednesday, up from about 87 per cent prior to the inflation report. Key measures of core inflation continued to hover around 3 per cent last month. Meanwhile, inflation excluding gasoline prices rose by 2.4 per cent, down slightly from the previous three months. The BOC's key interest rate currently stands at 2.75 per cent. Mr. Grantham expects the BOC to deliver another interest-rate cut in October, as well, which would bring the key interest rate down further to 2.25 per cent.