Canada’s annual inflation rate fell to 2.5% in July from 2.7% in June, Statistics Canada revealed on Tuesday.
The Consumer Price Index (CPI) increased at the slowest rate in more than three years, since March 2021.
The agency said the decrease in headline inflation was broad-based, driven by lower prices for travel tours (down 2.8%), passenger vehicles (down 1.4%) and electricity (down 0.8%).
Additionally, prices for shelter rose at a slower rate of 5.7%, compared to 6.2% in June.
On a monthly basis, the CPI rose 0.4% in July after falling 0.1% in June as higher gasoline prices put upward pressure on the monthly figure.
Year-over-year, gas prices rose at a faster pace in July, 1.9%, compared to 0.4% in the 12 months ending in June.
Price increases were higher in Prairie provinces, partially attributed to reduced supply amid a refinery shutdown in the midwestern United States.