OTTAWA – Tariff impacts are expected to keep underlying inflation elevated in July, a Desjardins economist says, even if the headline figure retreats.

Statistics Canada is set to report inflation figures for July on Tuesday. A poll of economists expects annual inflation cooled last month to 1.7 per cent, according to LSEG Data & Analytics.

June’s consumer price index showed the annual rate of inflation ticked up to 1.9 per cent.

Randall Bartlett, deputy chief economist at Desjardins, said he expects the headline inflation figure slowed beyond expectations to 1.6 per cent in July as lower energy costs continue to take steam out of price pressures.

“We’re kind of expecting it to be a bit softer than what we saw back in June. So, from a headline perspective anyway, that’s overall pretty p

See Full Page