Canada’s annual inflation rate dropped to 25% last month, aligning with forecasts as price pressures ease.
The consumer price index report highlights that lower prices for travel tours, passenger vehicles, and electricity contributed to this decline.
However, shelter costs remain the primary inflation driver, with Canadians facing higher rents and mortgage payments.
Notably, shelter price growth slowed to 57% year-over-year, down from 62% in June.
July saw the slowest annual increase in the consumer price index since March 2021, indicating significant progress against high inflation.
Grocery prices, once rising at double-digit rates, increased by 21% last month.
Despite some persistent price pressures, particularly in services, overall slowing price growth leads forecasters to expect the Bank of Canada to continue cutting interest rates.
The key interest rate now stands at 45%, with the next announcement scheduled for September 4.
Keith Hopper, Trending 55
