# Canada inflation cools to 40-month low of 2.5% in July | Reuters

> Canada's annual inflation rate eased to a 40-month low of 2.5% in July, matching forecasts. The Canadian dollar dipped slightly to 1.3628 per U.S. dollar and two-year bond yields fell.

- Date: 2024-08-20 · published 2024-08-20T12:00:00.000Z
- Category: macro · region Canada · magnitude low
- Page: https://feedsoft.ai/events/29034-canada-inflation-cools-to-40-month-low-of-2-5-in-july-reuters
- Commodities: [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md)

## Why it matters

Cooling inflation strengthens the case for further Bank of Canada rate cuts, which tends to weaken the loonie; the impact on feed commodity prices is limited.

## Read by commodity

- USDCAD: neutral

## Sources

- reuters.com: https://www.reuters.com/markets/canada-inflation-cools-40-month-low-25-july-2024-08-20/

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