12:20 PM EDT, 08/20/2025 (MT Newswires) -- The Toronto Stock Exchange is up 78 points with energy (+0.8%), the biggest gainer. Telecoms and utilities are both up 0.5%.

Limiting gains are losses in the healthcare and tech sector, which is 1.1% and 0.4% lower, respectively.

In Canada, BMO Economics said Tuesday's CPI report showed inflation eased to 1.7% year on year in July, though core price pressures remained elevated. BMO's Douglas Porter said: "There were no big surprises in the July inflation report, but we probably need a downside surprise at this point to prompt the BoC off the sidelines."

Rosenberg Research published a note entitled 'An Encouraging Canadian CPI Report' in which it said: "There were no surprises in Canada's CPI report for July. What the Bank [BoC] should like quite a lot was that the core ex-food & energy index came back below +0.1% MoM after a three-month bump."

Markets also await Fed Chair Jerome Powell's Jackson Hole speech on Friday and on whether he signals his willingness to cut interest rates at the central bank's meeting next month.

In stocks, Air Canada ( ACDVF ) is back in operations after it reached a tentative agreement with the union representing its flight attendants. Its shares are down 2% to $19.03 and is the second most actively traded on the TSX, with near 2.8 million shares changing hands.