Canada's annual inflation rate reached the central bank's 2% target in August, its lowest level since February 2021, data showed on Tuesday. The closely watched core price measures also cooled to their lowest levels in 40 months while month-on-month consumer prices deflated by 0.

Officials in some countries started cutting rates last year, but others, including those in Europe and the United States, have taken a more cautious approach.

Canadian inflation matched the central bank’s target last month for the first time in more than three years, smoothing the road for further cuts in interest rates.

With inflation subsiding, the European Central Bank is cutting its benchmark interest rate to prop up tepid growth with lower borrowing costs for companies and home buyers.

Profound shifts in the world economy could make inflation volatile for years to come, complicating efforts to control prices, but sticking with inflation-targeting regimes is still the best option, European Central Bank President Christine Lagarde said on Friday.

The ECB is expected to trim borrowing costs as its focus shifts from damping inflation to supporting the bloc’s faltering economy.

Russia’s central bank has raised its key interest rate by a full percentage point to 19% to combat high inflation as government spending on the military strains the economy’s capacity to produce goods and services and drives up workers’ wages.

Russia's central bank unexpectedly raised its benchmark interest rate by 100 basis points to 19% on Friday, saying that inflation remained stubbornly high and action was needed to reduce it.

Russia's central bank on Friday raised interest rates to 19 percent amid the country's ongoing Ukraine offensive, warning inflation was running too high and it needed to cool the economy.