Statistics Canada is expected to release new inflation data on Monday, and a Reuters poll of economists projects that the annual inflation rate will drop back below 3% in June. The expected decline is linked to falling gasoline prices during the month, which can reduce energy-related components of the consumer price index. The poll’s forecast suggests inflation would move to about 2% on an annual basis, indicating a faster cooling of price growth than previously seen.
Across the reporting, the central point is that June’s gas-price trend provides “temporary relief” for the overall inflation measure. That means the headline inflation rate is expected to ease, even if other categories of consumer prices may not be changing at the same pace. The forecast is based on economists’ estimates ahead of the official Statistics Canada figures rather than on the data itself. As a result, the final outcome will depend on how prices across all monitored categories evolve in June, not only energy costs.
