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Inflation eased to 2.8% in June as gas prices fell

Globe and Mail - Business - 2026-07-20

AI Summary

Canada's inflation rate eased to 2.8% in June, primarily driven by a significant drop in gasoline prices. Core inflation metrics also showed a slowdown, falling below the Bank of Canada's 2% target for the first time since December 2020. This data reinforces the Bank of Canada's current stance of holding interest rates steady, with economists anticipating a prolonged period of no rate changes.

Key takeaways

  • June inflation slowed to 2.8% due to lower gas prices.
  • Core inflation metrics fell below the 2% target.
  • Bank of Canada expected to hold interest rates steady.

What this could mean for homebuyers

Mortgage news can affect fixed rates, variable-rate expectations, affordability, and buyer timing. Use this article as context, then compare today's rates or ask the AI Mortgage Advisor how it applies to your situation.

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