Canada and South Africa See Inflation Rate Drops

South Africa and Canada both experienced significant drops in their inflation rates, reaching the lowest levels in three years. South Africa’s inflation rate fell to 4.6% in July, down from 5.1% in June, which may prompt the South African Reserve Bank to lower interest rates in September. Similarly, Canada’s inflation rate decreased to 2.5% in July from 2.7% in June, increasing the likelihood of the Bank of Canada cutting rates at its next meeting on September 4. Both countries' central banks are considering rate cuts to support economic growth amid easing inflationary pressures. Analysts suggest that the stronger rand in South Africa and easing pressures in Canada's housing sector are contributing factors to the declining inflation rates.