Heres why economists expect good news from the August inflation report – National [Video]

The Bank of Canada is set to get a fresh look at inflation figures this week as some economists expect another big step towards the central bank’s two per cent target.

Statistics Canada will release consumer price index figures for August on Tuesday, coming off July when the annual rate of inflation cooled to 2.5 per cent.

Royal Bank of Canada is expecting Canadians got even more inflation relief last month, with its analysis indicating that the annual rate likely slowed sharply to 2.1 per cent.

RBC economists Nathan Janzen and Claire Fan in a note attributed that drop largely to the pullback in gas prices in August, but they added that the Bank of Canada’s preferred measures of core inflation are also expected to show more signs of cooling.

James Orlando, director of economics at TD Bank, tells Global News that he’s also “expecting to get a pretty encouraging report for Canadian inflation this month.”