Canada's annual consumer inflation rises 2.5% in July, slowest pace since March 2021

By Ovunc Kutlu

ISTANBUL (AA) - Annual Canadian consumer inflation rose 2.5% in July, increasing at the slowest pace since March 2021, the country’s statistical authority said Tuesday.

While the figure came in line with market expectations, it marked a slowdown from a 2.7% annual increase in June.

The figure, in addition, reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 -- the highest for the consumer price index (CPI) in 39 years.

"Deceleration in headline inflation was broad-based, stemming from lower prices for travel tours, passenger vehicles and electricity," Statistics Canada said in a statement.

Prices for travel tours led the annual deceleration in July CPI with a 2.8% year-on-year decrease, followed by traveler accommodation falling 3.7% and air transportation declining 2.7%.

On a monthly basis, the CPI increased 0.4% in July, compared to the previous month, also coming in line with market estimates.

That figure, however, showed an acceleration from a 0.1% month-on-month decrease in June.

The monthly increase was driven by gasoline prices, which rose 2.4% in July month-on-month, according to the agency.