Canada’s annual inflation rate down to 2.5 percent, the lowest since March 2021

Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.

 

The federal agency says lower prices for travel tours, passenger vehicles and electricity helped drive the headline figure down.

 

And while shelter costs continue to be the main driver of inflation, price growth slowed last month to 5.7 per cent year-over-year.

July also marked the slowest annual increase in the consumer price index since March 2021.

 

With the backdrop of slowing inflation, forecasters are widely expecting the Bank of Canada to continue cutting interest rates at back-to-back meetings.

 

The central bank is scheduled to hold its next interest rate announcement on Sept. 4.

 

 

 

This article was first reported by The Canadian Press