The Canadian Index

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Chart comparing the Bank of Canada's overnight rate, held at 2.25 percent, against inflation surprises from September 2025 to July 2026.

Canada's second-quarter GDP grew at an annualized 3.4%, well above the Bank of Canada's 2.5% forecast, while unemployment fell to 6.4% in July and headline inflation rose to 3.0%, partly on Hormuz-linked gasoline prices. Despite that mix of hot growth and rising inflation, the Bank is still expected to hold its rate at 2.25% on September 2, a seventh consecutive hold. Two unresolved events land within days: Canada's own September 8 retaliatory tariffs and an August 28 Jackson Hole speech from a leading Fed contender.

This chart is presented for general informational purposes only and does not constitute financial, investment, tax, or legal advice. Figures reflect the source and period indicated and may no longer be current.

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Line chart comparing Canada's headline and core Consumer Price Index inflation rates through July 2026.

Canadian headline inflation accelerated to 3.0% in July, up from 2.8% in June and above consensus, driven mainly by energy prices as…

Canada's Inflation Print Just Complicated the Bank of Canada's September Calculus, and the Fed Isn't Making It Easier

August 20, 2026

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Line chart tracking Canada's year over year consumer price inflation rising to 3.0 percent through July 2026.

Canada's annual inflation rate rose to 3.0% in July, up from 2.8% in June, driven almost entirely by a 26% jump in gasoline prices tied to Middle East shipping disruptions.

Canada's Inflation Rose to 3.0 Percent. The Bank of Canada Is Still More Likely to Cut Than Hike.

August 19, 2026

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Line chart comparing Canada's headline and ex-gasoline CPI year-over-year from January through July 2026.

Canada's headline CPI rose 3.0% in July, edging above forecasts, almost entirely on a jump in gasoline prices tied to Middle East supply concerns.

Canada CPI Points to a BoC Hold as Bond Yields Climb

August 18, 2026

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Line chart tracking implied odds of a Fed rate hike alongside WTI crude oil prices from July 15 to July 28, 2026.

Markets still see a meaningful chance of a US interest rate hike this week, even though oil, a key driver of the recent inflation scare,…

Fed Hike Odds Have Barely Moved Even as Oil Fell 12%. Here Is Why That Gap Matters.

July 28, 2026

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Monthly chart showing Canada's core inflation measure falling to a five-year low of 1.8 percent in June.

Odds of a Wednesday Federal Reserve rate hike had climbed toward one in three by late last week, up from roughly 18% on July 2, as…

Canada's Core Inflation Falls to a Five-Year Low

July 27, 2026

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Step chart showing the Bank of Canada overnight rate holding at 2.25 percent through six straight decisions since 2025.

The Bank of Canada has held its overnight rate at 2.25% through six consecutive decisions since October 2025, with swap markets pricing…

Why the BoC's September 2 Hold Is the Least Interesting Rate Decision This Week

August 25, 2026

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