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Canada's annual inflation rate dropped to 2.5 per cent in Julydown from 2.7 per cent in June, Statistics Canada said Tuesday. The national statistics agency said inflation increased at the Canada's inflation rate cooled to 2.5% in July, the lowest rate since March 2025. Ari Rabinovitch with what the cooling rates could mean for Canadians, and how a rail Monthly CPI Changes: Rose by 0.4% in July after a 0.1% decline in June. Seasonally adjusted, the CPI increased by 0.3%. Travel and Accommodation: Year-over-year The inflation rate for Canada has dropped to 7.6% in the month of July, from 8.1% in June. The country seems to be going against the global trend of skyrocketing inflation Canada’s annual inflation rate fell to 2.5 per cent last month, matching economists’ forecasts and solidifying expectations for a third consecutive interest rate cut in Canada's annual inflation rate dropped to 2.5% in July 2025, the lowest level in 40 months – a major shift in the nation's economic landscape. What does this mean?

Canada's Inflation Numbers Drop in July: What Does It Mean for You?

Canada's annual inflation rate dropped to 2.5% in July 2025, the lowest level in 40 months – a major shift in the nation's economic landscape. But what exactly does this mean for Canadians?

Statistics Canada said Tuesday that Canada's annual inflation rate dropped to 2.5 per cent in July, down from 2.7 per cent in June. The national statistics agency provided a detailed breakdown of the factors influencing this decrease.

Key Highlights from July's Inflation Report:

  • Canada's inflation rate cooled to 2.5% in July, the lowest rate since March 2025.
  • Canada’s annual inflation rate fell to 2.5 per cent last month, matching economists’ forecasts and solidifying expectations for a third consecutive interest rate cut.
  • Monthly CPI Changes: Rose by 0.4% in July after a 0.1% decline in June. Seasonally adjusted, the CPI increased by 0.3%.
  • Travel and Accommodation: Year-over-year, prices continue to fluctuate but are contributing less to overall inflation than previous months.

Previously, we saw The inflation rate for Canada has dropped to 7.6% in the month of July, from 8.1% in June. While not directly comparable due to the different years, it showcases the progress made in curbing inflation.

Ari Rabinovitch delves into what the cooling rates could mean for Canadians, and how a rail strike could potentially impact prices and supply chains in the coming months.

While the Canada's inflation rate cooled to 2.5% in July, the trend is still increasing at the Canada's inflation rate. Understanding the nuances of these changes is crucial for making informed financial decisions.

Stay tuned for more in-depth analysis on Canada's inflation trends and their impact on your wallet!

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