Statistics Canada is set to release its April consumer price index report Tuesday morning.
Economists expect Canada’s annual inflation rate fell slightly last month from 2.9 per cent in March.
RBC is forecasting prices were 2.7 per cent higher in April compared with a year ago.
The Bank of Canada will have a close eye on Tuesday’s report as it gears up for its interest rate decision on June 5.
Financial markets are leaning toward a July rate cut, but economists say new inflation figures will help solidify expectations.
The Bank of Canada has signalled it is inching closer to cutting interest rates, but it wants to see the downward momentum in inflation sustained for longer.
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