# Canada's 2% inflation rate in August raises hopes for large rate cut

> Canada's annual inflation rate cooled to 2% in August, its lowest level since February 2021, with shelter costs still easing. The Canadian dollar edged lower to about 1.3589 per U.S. dollar after the release.

- Date: 2024-09-17 · published 2024-09-17T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/28558-canada-s-2-inflation-rate-in-august-raises-hopes-for-large-rate-cut
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Softer inflation raises bets on larger Bank of Canada rate cuts, which tends to weaken the loonie against the U.S. dollar. For feed buyers this is a currency-driven shift with little direct effect on grain or oilseed prices.

## Read by commodity

- USDCAD: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/world/americas/canadas-inflation-cools-2-aug-reaches-central-banks-target-2024-09-17/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.