Inflation
Canada Headline Inflation Moderates to 2.9% as Core Rates Stabilize
20 Aug 2026
Canada's headline inflation rate has edged down to 2.9%, while key core inflation measures remain positioned near the Bank of Canada's 2% target.
Why it matters
The stabilization of core inflation near the midpoint of the central bank's target range increases the likelihood of a shift toward a less restrictive monetary policy, potentially exerting downward pressure on the Canadian Dollar.