StatCan: Canada’s inflation rate advanced to 3.3% in July

Statistics Canada says the country’s annual inflation rate rose to 3.3 per cent in July, marking an increase in the pace of price growth since June.

This comes after inflation tumbled to 2.8 per cent in June, falling within the Bank of Canada’s target range of between one and three per cent for the first time since March 2021.

The federal agency says the rise in inflation for July is due to gasoline prices that fell less dramatically from prices a year ago.

The report says gasoline prices last month were being compared to when prices had declined significantly in July 2022, as fears of an economic slowdown grew.

Meanwhile, grocery prices rose 8.5 per cent on an annual basis, rising more slowly than in June, largely due to smaller price increases for fruit and bakery goods.

The Bank of Canada expects inflation to hover around three per cent over the next year, before steadily declining to two per cent by mid-2025.

This article was first reported by The Canadian Press