Statistics Canada to release July inflation rate, expected to drop from peak – National | Globalnews.ca

Statistics Canada is expected to release July’s inflation data this morning.

Economists believe the inflation rate may have already peaked given the recent drop in gas prices, which fuelled May and June’s inflation reading.

RBC is forecasting the year-over-year inflation rate fell from a nearly 40-year high of 8.1 per cent in June to 7.7 per cent in July.

As countries around the world struggle with skyrocketing prices, there are some signs inflation is beginning to ease, with the U.S. seeing its inflation rate decline in July.

The Bank of Canada is set to make its next key interest rate announcement on Sept. 7 and is expected to raise borrowing rates again.

The central bank is hoping its interest rate hikes will bring inflation back down to its two per cent target without triggering a serious economic downturn.

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When can we expect to see a drop in our inflation rate?