Canada’s inflation rate hits 2 per cent, lowest in more than three years

Slowdown will likely spark speculation of a larger interest rate cut next month from the Bank of Canada

OTTAWA — Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth. The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

Statistics Canada’s consumer price index report on Tuesday attributed the slowdown in part to lower gasoline prices.