Inflation in Canada: New data released [Video]

OTTAWA –

Canada’s annual inflation rate fell to 2.5 per cent last month, matching forecasters’ expectations as price pressures continue to retreat.

Tuesday’s consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.

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Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments.

The federal agency noted, however, that shelter price growth slowed last month to 5.7 per cent year-over-year, down from 6.2 per cent in June.

July marked the slowest annual increase in the consumer price index since March 2021, highlighting the significant progress made in the fight against high inflation.

Grocery prices, which at one point were growing at a double-digit annual rate, are now rising at a much more modest pace. Last month, grocery prices were …