Canada's inflation rate eased to 2.5 percent in July: report

 

Canada's inflation rate eased to 2.5 percent in July, Statistics Canada said. Inflation rose to 2.5 percent in July from 2.7 percent in June as price pressures eased across the economy. It was the slowest annual increase in the consumer price index since March 2021. Travel prices were lower compared to a year ago when travel tours, airline tickets and accommodation rose, leading to lower inflation. Lower prices for passenger vehicles and electricity also led to lower inflation rates.

Meanwhile, grocery prices rose 2.1 percent. Amid interest rate hikes that began in early 2022, rents rose 8.5 percent year-over-year. Mortgage interest rates rose 21 percent. While housing costs remained a key driver of inflation, rate growth slowed to 5.7 percent last month. The Bank of Canada is forecast to continue cutting interest rates again in the face of inflation.