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Canadian Inflation Quickens to 3%

Canada’s annual inflation rate accelerated to 3.0% in July from 2.8% a month earlier, as a sharp run-up in pump prices overwhelmed cooling grocery costs, Statistics Canada said Monday.

On a monthly basis, the consumer price index rose 0.5%. Seasonally adjusted, the increase was 0.3%.

Gasoline drove most of the increases. Prices at the pump were up 25.7% from a year earlier, a step up from June’s 20.5% gain, after conflict in the Middle East, including the blockade of the Strait of Hormuz and the partial closure of Red Sea shipping routes late in the month, squeezed global supply.

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What’s going on?

• Hydro-Quebec, NL Hydro Sign 50-Year Churchill Falls Deal (theDeepDive)

• Carney says last-minute U.S. tariff negotiations are 'delicate' and 'intense' as deadline looms (CBC)

• Libya Set to Join China’s Yuan Payment Network in Africa (theDeepDive)

• Less than 20% of Canadians want to give U.S. ‘concessions,’ poll finds (GN)

• Weak Spending Drags Japan’s GDP Growth Below Forecasts (theDeepDive)

• Doug Ford says Ontario needs data centres to protect Canadians from Donald Trump (TS)

• Trump Touts ‘Very Good Relationship’ With Kim Jong Un After South Korea Balks on Iran (theDeepDive)

• Liberals search for tax reform ideas as experts call for overhaul (Globe)

• Pacific Left Without US Carrier as Washington Sails for Iran (theDeepDive)

What’s the latest?

• AI: Nvidia will provide up to US$105 billion in financing for an OpenAI AI data center in Ohio, supporting 4.25 GW initially with an option for another 3.75 GW, coming online from 2028. SB Energy and SoftBank will build 10 GW of power capacity, while Nvidia invests US$1.5 billion; OpenAI expects 35,000 construction jobs and 2,500 permanent positions.

• Mining: Energy Fuels is expanding from uranium into rare earths, using its Utah mill to build a mine-to-magnet supply chain independent of China. Its planned US$1.9-billion acquisition of German magnet maker VAC would make it a vertically integrated producer, while BMO initiated coverage with an Outperform rating and US$18 price target.

• Economy: Canada’s inflation rose to 3.0% in July from 2.8%, mainly as gasoline prices surged 25.7% year-over-year, while grocery inflation eased to 3.1%. Despite some core inflation pressure, economists expect the Bank of Canada to hold its 2.25% rate through 2026, with upcoming U.S. tariffs posing a bigger risk to growth.

• Markets: Canada’s TSX fell 62 points to 36,667.92, while U.S. markets also declined. The Canadian dollar rose to 72.12¢ US, while oil fell to US$84.50/barrel and gold climbed to US$4,473.70/oz.

• Energy: Oil prices jumped as the U.S. and Iran ruled out extending their 60-day agreement, with WTI rising 2.6% to US$84.50 and Brent gaining 2.7% to US$90.87. Hormuz traffic remains near a standstill at just 3 vessels Sunday versus roughly 130 pre-war, while analysts warn Brent could return toward US$100/barrel.

This Copper - Gold District Is 5x the Size of Toronto

The stock market and stuff

• NexGen Confirms Open Dialogue with BHP over Rook I Uranium Project (theDeepDive)

• Equinox Gold Wins Federal Approval to Build South Railroad in Nevada (theDeepDive)

• Anthropic tells investors annualized revenue run rate climbed to $65 billion in July (CNBC)

• US Homebuyer Demand Falls to a Record Low as Mortgage Rates Climb (theDeepDive)

• Endeavour Silver Suspends Terronera Operations Amid Illegal Blockade (theDeepDive)

In the juniors

• PTX Metals Hits 97% Copper Recovery in First Locked Cycle Test at W2 (theDeepDive)

• OceanaGold to Acquire Ausgold in US$549 Million Deal (theDeepDive)

• Selkirk Copper Launches Scoping Study on Concentrate Shipping Through Port of Skagway (theDeepDive)

FULL DISCLOSURE: First Phosphate is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Phosphate. The author has been compensated to cover First Phosphate on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.