OTTAWA — Statistics Canada has announced that the annual inflation rate dropped to 1.7% in July, down from 1.9% in June, primarily due to a significant decrease in gasoline prices.
The federal agency noted that gas prices were 16.1% lower than last year, a decrease attributed to the removal of the consumer carbon price. Monthly gas prices also saw a 0.7% drop, following increased production from oil-exporting nations and the ceasefire announcement between Israel and Iran.
However, the cost of groceries rose by 3.4% year-over-year, up from 2.8% in June. Statistics Canada stated that poor weather in cocoa and coffee-producing countries affected production, leading to increased prices for chocolate and coffee in July. Shelter inflation also saw its first increase since February of last year due to rising rents.
