diff --git a/dvc/parsing/__init__.py b/dvc/parsing/__init__.py
index 6d3f47ab0..fce30b6af 100644
--- a/dvc/parsing/__init__.py
+++ b/dvc/parsing/__init__.py
@@ -135,6 +135,7 @@ def make_definition(
 class DataResolver:
     def __init__(self, repo: "Repo", wdir: str, d: dict):
         self.fs = fs = repo.fs
+        self.parsing_config = repo.config.get("parsing", {})
 
         if os.path.isabs(wdir):
             wdir = fs.path.relpath(wdir)
@@ -301,7 +302,10 @@ class EntryDefinition:
     ) -> "DictStrAny":
         try:
             return context.resolve(
-                value, skip_interpolation_checks=skip_checks, key=key
+                value,
+                skip_interpolation_checks=skip_checks,
+                key=key,
+                config=self.resolver.parsing_config,
             )
         except (ParseError, KeyNotInContext) as exc:
             format_and_raise(exc, f"'{self.where}.{self.name}.{key}'", self.relpath)
diff --git a/dvc/parsing/context.py b/dvc/parsing/context.py
index 221c5feab..6484f0829 100644
--- a/dvc/parsing/context.py
+++ b/dvc/parsing/context.py
@@ -495,7 +495,12 @@ class Context(CtxDict):
                 self.data.pop(key, None)
 
     def resolve(
-        self, src, unwrap=True, skip_interpolation_checks=False, key=None
+        self,
+        src,
+        unwrap=True,
+        skip_interpolation_checks=False,
+        key=None,
+        config=None,
     ) -> Any:
         """Recursively resolves interpolation and returns resolved data.
 
@@ -511,10 +516,15 @@ class Context(CtxDict):
         {'lst': [1, 2, 3]}
         """
         func = recurse(self.resolve_str)
-        return func(src, unwrap, skip_interpolation_checks, key)
+        return func(src, unwrap, skip_interpolation_checks, key, config)
 
     def resolve_str(
-        self, src: str, unwrap=True, skip_interpolation_checks=False, key=None
+        self,
+        src: str,
+        unwrap=True,
+        skip_interpolation_checks=False,
+        key=None,
+        config=None,
     ) -> str:
         """Resolves interpolated string to it's original value,
         or in case of multiple interpolations, a combined string.
@@ -535,7 +545,12 @@ class Context(CtxDict):
             return value
         # but not "${num} days"
         return str_interpolate(
-            src, matches, self, skip_checks=skip_interpolation_checks, key=key
+            src,
+            matches,
+            self,
+            skip_checks=skip_interpolation_checks,
+            key=key,
+            config=config,
         )
 
 
diff --git a/dvc/parsing/interpolate.py b/dvc/parsing/interpolate.py
index a423c0a1b..4b9b0686c 100644
--- a/dvc/parsing/interpolate.py
+++ b/dvc/parsing/interpolate.py
@@ -82,20 +82,18 @@ def escape_str(value):
 
 
 @singledispatch
-def to_str(obj) -> str:
+def to_str(obj, config=None) -> str:  # noqa: ARG001, pylint: disable=unused-argument
     return str(obj)
 
 
 @to_str.register(bool)
-def _(obj: bool):
+def _(obj: bool, config=None):  # noqa: ARG001, pylint: disable=unused-argument
     return "true" if obj else "false"
 
 
 @to_str.register(dict)
-def _(obj: dict):  # noqa: C901
-    from dvc.config import Config
-
-    config = Config.from_cwd().get("parsing", {})
+def _(obj: dict, config=None):  # noqa: C901
+    config = config or {}
 
     result = ""
     for k, v in flatten(obj).items():
@@ -211,6 +209,7 @@ def str_interpolate(
     context: "Context",
     skip_checks: bool = False,
     key=None,
+    config=None,
 ):
     index, buf = 0, ""
     for match in matches:
@@ -218,7 +217,7 @@ def str_interpolate(
         expr = get_expression(match, skip_checks=skip_checks)
         value = context.select(expr, unwrap=True)
         validate_value(value, key)
-        buf += template[index:start] + to_str(value)
+        buf += template[index:start] + to_str(value, config=config)
         index = end
     buf += template[index:]
     # regex already backtracks and avoids any `${` starting with