Tony Stillo, director of Canada economics at Oxford Economics, said that matches his own forecast for 2% inflation in August, as energy and food prices accelerated. Stillo said he expects Canada’s counter-tariffs on grocery items such as Florida orange juice contributed to sticky food inflation last month. Stillo said that decision, combined with Canada’s economy contracting in the second quarter, will take some steam out of prices. “However, an upside surprise to inflation readings may keep the BoC to the sidelines,” the report said. Combined with diminishing inflation risks, Capital Economics expects the bank to cut rates this week and once more before the end of the year.