Canadian Inflation Holds at Target, Limiting Case for Central Bank Rate Hike, Corpay Says

09:48 AM EDT, 09/14/2026 (MT Newswires) -- Canada's underlying inflation held steady in August, keeping expectations for a Bank of Canada rate hike by year-end largely unchanged, Corpay said in a note. Core inflation, based on the average of the BoC's preferred trim and median measures, held steady at 1.95% annually, said Corpay. The consumer price index rose 3.0% annually but fell 0.1% monthly on a non-seasonally adjusted basis. The data supports the view that inflation remains broadly contained, reducing the case for further monetary tightening, Corpay Chief Market Strategist Karl Schamotta said in the note. While the BoC was less dovish than expected in the September policy meeting, leading markets to price in at least one rate hike by year-end, that outlook appears too aggressive given persistent economic weakness, ongoing uncertainty and limited evidence of broader inflation spillovers, added Schamotta. With inflation broadly at target, there is little need for further tightening at this stage, according to Corpay.