Canada's annual inflation rate fell in July, with Statistics Canada reporting consumer prices rose 1.3 per cent from a year earlier. That's down from June when prices were up 1.5 per cent from a year before.
On a seasonally adjusted monthly basis, the Consumer Price Index declined 0.1 per cent in July.
Core inflation – which excludes volatile items like energy and fresh fruit and vegetables – rose 1.7 per cent in the 12 months ended in July. That followed a two per cent gain in June.
The Bank of Canada aims to keep inflation at an average of two per cent over the medium term.
CIBC World Economics says inflation was much softer than expected. It noted that transportation costs fell, likely due to lower energy costs, as well as other items such as clothing and footwear. On the other hand, food prices posted gains.
- With files from OBJ Staff
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