Canada's annual inflation rate has returned to the Bank of Canada's 2% target for the first time since 2021, with the Consumer Price Index rising at an annual rate of 2% in August, down from 2.5% in July, driven partly by lower gasoline and clothing prices. Financial markets are speculating about a potential interest rate cut by the Bank of Canada in October, following three consecutive quarter-point cuts. Central bankers caution that inflation could fluctuate and may not stabilize sustainably until 2025. Similarly, the European Central Bank projects achieving its 2% inflation target by the end of 2025, though it remains vigilant due to uncontrollable factors like energy prices. ECB policymakers emphasize that core inflation is moving in the right direction, supported by a declining wage trend in the eurozone.