Affiliate Disclosure
Affiliate Disclosure adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

Inflation Falls in Canada, New Zealand, and the UK

Canada, New Zealand, and the UK all reported lower inflation this week, as aggressive rate tightening by central banks has slowed economic activity and cooled inflation.

Top Forex Brokers


    Canada’s CPI falls to 2.8% 

    Canada’s Consumer Price Index (CPI) dropped to 2.8% year-on-year in June, down from 3.4% in May and below the consensus forecast of 3.0%. This was the lowest level since March 2021.  The average of two of the Bank of Canada’s (BOC) core measures of inflation came in at an average of 3.8% in June, a tick lower than the May reading of 3.9%. Core CPI excludes food and energy items and is considered more important than headline CPI.

    The good news is that inflation has finally dropped to within the Bank of Canada’s target range of 1%-3%. However, core CPI has been more persistent than expected and remains above the target range.

    The BoC raised rates last week by 0.25%, bringing the benchmark cash rate to 5.0%. The central bank would like to pause hiking at the next meeting in September, but that will depend on key economic data, particularly inflation and employment. The money markets are expecting a pause in September and have priced in the probability of a rate hike at 20%.

    New Zealand CPI Eases to 6% 

    New Zealand CPI, which is released quarterly, fell in the second quarter to 6.0% year-on-year, down sharply from 6.7% in the first quarter but a notch above the consensus of 5.9%.  This was the lowest reading since Q4 2021. On a quarterly basis, CPI dipped to 1.1% in Q2, down from 1.2% in Q1. Food and housing were the main contributors to inflation.

    Inflation is moving in the right direction but remains well above the Reserve Bank of New Zealand’s (RBNZ) target of 2%. The central bank has hiked by 525 basis points in the current rate-tightening cycle but may need to tighten further in order to bring inflation closer to target. The RBNZ meets next on August 16th.

    UK Inflation Beats Expectations, Falls to 7.9% 

    The UK, which boasts the highest inflation of any G-7 country, finally had something to cheer about today, with a better-than-expected inflation report. In June, CPI fell to 7.9% year-on-year, sharply lower than the 8.7% gain in May. Core CPI declined slightly to 6.9%, down from the May reading of 7.1%, which was a 31-year high.

    The drop in headline inflation is certainly encouraging, but the core rate has proven to be stickier than expected, and the Bank of England likely will have to continue raising rates in order to bring down inflation closer to its 2% target.

    Canadian Dollar Up, New Zealand Dollar and British Pound Slip 

    In the Forex market, the positive inflation reports sent the Canadian dollar slightly higher but pushed the New Zealand Dollar and British Pound lower.

    The Canadian Dollar against the US Dollar posted modest gains on Tuesday.

    The New Zealand dollar against the US Dollar declined as much as 100 pips following the inflation report but has pared most of those losses.

    The British Pound against the US Dollar is down by 80 pips on Wednesday.

    Canadian and UK Stock Markets Higher, New Zealand Steady 

    The benchmark Canadian index, the S&P/TSX, rose 149.78 points on Tuesday (0.74%), closing at 20,376.57.

    In the UK, the FTSE 250 Index has soared by 548.81 points (2.95%) on Wednesday.

    In New Zealand, the S&P/NZX 50 is up 0.10% at 11,945 on Wednesday.

    Kenny Fisher
    About Kenny Fisher
    Kenny started his career in forex working in the sales and marketing department at a major forex broker and has worked as a market analyst for 12 years. With a legal editing background, Kenny has combined his writing skills and finance expertise to produce top-quality articles. Kenny covers a wide range of topics, including global stock markets, commodities and currencies, with focus on fundamental and macro-economic analysis. Kenny’s articles have been carried by Oanda,, Seeking Alpha and FXStreet. Kenny holds a Bachelor of Law from Ogoode Hall Law School in Toronto, Canada.

    Most Visited Forex Broker Reviews