Statistics Canada reported that Canada’s annual inflation rate fell to 1.3 percent last month as consumers paid less for gasoline. This statistic is down from 1.5 percent in June. Economists predicted that the inflation rate would ease to 1.4 percent.
Pump prices experienced a 12 month drop to 14 percent, falling by 5.6 percent. Fuel oil and natural gas prices also fell – they were down by double digits from a year earlier.
The data agency found that consumers spent more for food and shelter, although pump prices fell by 5.6 percent in July. Compared to July 2015, Canadians paid 10.3 percent more for fresh or frozen fish last month.
The core rate of inflation (which excludes volatile factors like fresh) stayed the same from June at 2.1 percent. Consumer prices increased less in July than in June in seven provinces. On an annual basis, the consumer price index increased in Brunswick (by 2.5 percent) and in Newfoundland and Labrador (by 3.4 percent) as both provinces increased the provincial portion of the HST on 1 July by 2 percent.
"Markets may be worrying about Canada's economic growth performance, but underlying inflation certainly isn't raising any eyebrows," noted TD economist Leslie Preston in a commentary.