Inflation Update
Inflationary numbers came in higher for July at 3.3% than the previous months report of 2.8%.
We saw the most significant increases to energy categories with electricity coming in 11.7% higher than a year ago. We also saw very minimal changes to gasoline prices. Likewise, mortgage interest costs and accommodation continues to lead inflationary increases.
Fortunately, we did see a noticeable decline to food prices, measuring at 7.8% from the previous months report of 8.3%.
We also saw a mild decline to core inflationary measures over a three month annualized average, which the Bank of Canada weighs into their decision when deciding whether or not to increase or decrease interest rates.
Although we have seen significant declines to inflationary prices over the past year, the Bank of Canada continues to suggest that there may be more rate hikes in our future until inflation numbers nears their desired target of 2%.
However, do keep in mind that other economical factors are always considered and come into play as well when deciding whether another rate increase will be on the table. This includes the decline we’ve seen to economic output and the increase we’ve seen to unemployment rates.
The next Bank of Canada rate announcement is scheduled for September 6th.
Reach out anytime if you have questions ☺️