Canada stocks slip as inflation hits top of target range
Canada's primary stock index slipped on Monday as July's inflation data exceeded expectations, prompting caution among investors, despite gains in oil and gold-linked sectors. The S&P/TSX composite index declined 62 points, or 0.2%, to 36,667.92. OceanaGold announced a deal to acquire Ausgold in Australia for A$776 million, causing its shares to rise.
The Bank of Canada's preferred inflation measures remained close to the 2% target, potentially preventing a sharp market reaction. Analysts expect the central bank to keep interest rates unchanged through 2026. Canada's annual inflation rate rose to 3% in July, slightly higher than expected, largely due to higher gasoline prices driven by U.S.-Iran tensions.
The consumer price index increased 0.5% from June, above the forecasted 0.4%. Wall Street closed lower as traders took a breather after a record-setting week, with oil prices climbing amid little signs of a Middle East diplomatic breakthrough.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
