Tiff Macklem

OTTAWA – Canada’s annual inflation rate reached the central bank’s target in August at it cooled to 2%, its lowest level since February 2021, data showed on Tuesday. The closely watched core price measures also cooled to their lowest level in 40 months while month-on-month consumer prices deflated by 0.2%, Statistics Canada said. Analysts polled by Reuters had forecast the CPI to cool to 2.1% from 2.5% in July on an annual basis, and expected it to be unchanged on a monthly basis. The Canadian dollar weakened on the news, dipping 0.2% to $1.1361 to the U.S. dollar, or 73.45 U.S. cents. …Shelter costs, which accounts for close to 30% of the CPI basket, rose by 5.2% in August, from 5.7% in July, primarily led by rents which rose by 8.9% from 8.5% in July.