According to data released by Statistics Canada on Monday, driven by falling gasoline prices, Canada's inflation rate fell more than expected in June. One key core inflation indicator fell to 1.85%, the lowest level since September 2020. This is also the first time in nearly six years that this indicator has fallen below 2%. The consumer price index rose 2.8% year on year in June, down from 3.2% in May, and lower than the 2.9% expected by economists. This lower-than-expected inflation data further shows that the effects of inflation brought about by the Iran war have not spread from the energy sector to other fields. The Bank of Canada has previously warned that if rising energy costs are transmitted to the prices of other goods and services, interest rate hikes may be needed, but the cooling of core inflation indicates that the economy's idle production capacity is offsetting the price pressure brought about by the war.

According to data released by Statistics Canada on Monday, driven by falling gasoline prices, Canada's inflation rate fell more than expected in June. One key core inflation indicator fell to 1.85%, the lowest level since September 2020. This is also the first time in nearly six years that this indicator has fallen below 2%. The consumer price index rose 2.8% year on year in June, down from 3.2% in May, and lower than the 2.9% expected by economists. This lower-than-expected inflation data further shows that the effects of inflation brought about by the Iran war have not spread from the energy sector to other fields. The Bank of Canada has previously warned that if rising energy costs are transmitted to the prices of other goods and services, interest rate hikes may be needed, but the cooling of core inflation indicates that the economy's idle production capacity is offsetting the price pressure brought about by the war.