FX.co ★ Canada’s Trimmed CPI Eases to 1.8% in June, Slipping Below 2% Target

Canada’s trimmed Consumer Price Index (CPI) eased to 1.8% year-over-year in June 2026, down from 2.0% in May, according to data updated on 20 July 2026. The trimmed CPI is a core inflation measure that filters out the most volatile price movements, offering a clearer view of underlying inflation trends.

On a year-over-year basis, June’s reading marks a slight softening in price pressures compared with the previous month, when the trimmed CPI matched the Bank of Canada’s 2% inflation target. The current 1.8% print suggests that underlying inflation is now running just below that benchmark.

The figures reflect a comparison of June 2026 price changes with those of June 2025, while the previous reading compared May 2026 with May 2025. The incremental decline could factor into market expectations around the Bank of Canada’s policy stance, as investors and analysts assess how sustained sub-2% core inflation might influence future interest rate decisions.