FX.co ★ TSX Edges Higher on Softer Inflation Data

The S&P/TSX Composite Index edged higher on Monday, trading back above 35,000 after the release of June’s inflation data. Canada’s annual inflation rate slowed to 2.8% in June 2026 from 3.2% in May, coming in just below the consensus forecast of 2.9%. The deceleration was driven in part by more moderate gasoline price increases, while the Bank of Canada’s preferred core inflation measures fell to their lowest levels in more than five years. This reinforced the BoC’s view that the impact of higher energy costs linked to the Middle East oil supply crisis remains largely contained and is not propagating broadly through the economy.

Following the data, Canadian government bond yields declined. In equities, most financials traded higher, with TD Bank, BMO, CIBC, and Scotiabank all recording modest gains. Technology names also advanced, mirroring the rebound in U.S. tech shares, with Shopify up around 1% and Celestica climbing roughly 4%. By contrast, energy stocks weighed on the index, as Canadian Natural Resources and Suncor each slipped about 1% amid a pullback in oil prices from recent highs.