OTTAWA – The latest report from Statistics Canada reveals that Canada’s annual inflation rate saw a notable increase to 3.3 percent in July, marking a significant acceleration in price growth compared to the previous month.
This surge follows a dip in inflation to 2.8 percent in June, which had brought the rate within the target range of the Bank of Canada—between one and three percent—for the first time since March 2021. According to the federal agency, the rise in July’s inflation can be attributed to gasoline prices that experienced a less pronounced decline compared to the same period a year ago.
The report indicates that the context for this increase in gasoline prices is the comparison to July 2022 when prices had experienced a substantial decrease due to mounting concerns about an economic slowdown.
In a separate aspect, grocery prices exhibited an 8.5 percent annual increase, a slower rise than observed in June. This deceleration was mainly attributed to milder price hikes for items in the fruit and bakery categories.
Looking ahead, the Bank of Canada anticipates that inflation will continue to hover around the three percent mark over the coming year. Subsequently, it is expected to gradually decrease, reaching a level of two percent by the middle of 2025.