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Bank of Canada still expected to hike interest rates despite inflation rate dip

Financial experts say yesterday’s (Tuesday) decline in the inflation rate is unlikely to prevent another big jump in interest rates when the Bank of Canada meets early next month.

Statistics Canada put July’s increase in the Consumer Price Index at 7.6 percent, down from the 8.1 percent recorded in June, and the first time the rate declined in more than two years.

But analysts note the drop was only because gas prices have fallen.

Almost everything else is still rising in cost, food prices, for example, are up 9.9 percent over last July.

Bank of Canada Governor Tiff Macklem stated, that while July’s figures are a “relief,” there’s still much work to do to tame inflation.

with files from Vista Radio newswire

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