Investing.com - The overall rate of inflation in Canada unexpectedly accelerated in July, supporting the view that the central bank will hike interest rates at least once more this year.
Statistics Canada said that the consumer price index rose 3.0% last month, compared with the same month a year earlier.
That beat expectations which had had pegged headline inflation to remain unchanged at 2.5% in July.
Prices rose by 0.5% from a month earlier, above estimates for a 0.1% gain.
Core inflation, which excludes gasoline, was up 1.6% from a year earlier and rose by 0.2% from the previous month.
Analysts had expected an annualized increase of 1.3%.
The Bank of Canada aims to keep inflation at 2%, the midpoint of a target range of 1% to 3% over the medium term.