The Globe and Mail reports in its Thursday, July 18, edition that lower energy prices helped push down Canada's annual inflation rate in June to 2 per cent from 2.4 per cent in May, Statistics Canada said on Wednesday, a week after the Bank of Canada predicted the indicator would start falling. A Reuters dispatch to The Globe reports that June marked the third month in a row that the rate has met or exceeded the BOC's 2-per-cent target for inflation.
The BOC has held interest rates steady since October, 2018, as it watches how the domestic economy recovers from a recent slowdown.
The bank is not expected to move again for the rest of the year.
The BOC last week projected the overall inflation rate would dip to about 1.6 per cent in the third quarter before recovering to about 2 per cent in the fourth quarter.
"Inflation is obviously neither too hot or too cold at this point. It's almost a non-factor for the bank's next move," said BMO economist Doug Porter.
"In other words, it doesn't really constrain them one way or the other," he said.
Although two of the BOC's measures of core inflation remained above 2 per cent, CPI common was unchanged at 1.8 per cent.
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