Canada CPI Cools to 2.8% as Gas Drop Offsets World Cup Bump

The 2026 FIFA World Cup complicated the picture. Host cities Toronto and Vancouver saw traveller accommodation prices jump 10.1% year over year, with hotel rates surging 19.4% in Ontario and 20.0% in British Columbia. Rental car prices rose 6.8%, travel tours climbed 6.8% and airfares gained 9.6%. The data suggests strong visitor demand pushed up travel-related costs even as broader price pressures softened.

Statistics Canada's report showed inflation cooling across most provinces, with lower energy costs offsetting the World Cup-related bump. The underlying trend pointed to easing price pressures as Q2 closed.

The USDCAD ticked higher after the release, pushing back above the 100-hour moving average at 1.4040. The pair had traded below that level since July 8, and traders said the return above it would serve as a near-term gauge for direction.