Sharjah24 – AFP: Inflation in Canada eased off slightly in July from its blistering pace thanks in part to lower fuel prices, but food costs continued to soar, government data released Tuesday showed.
Inflation stood at 7.6 percent year-on-year after peaking at a four-decade high of 8.1 percent in June, according to Statistics Canada.
On a monthly basis, consumer prices rose 0.1 percent in July, the seventh consecutive monthly increase.
"Consumers paid 9.2 percent less for gasoline in July compared with the previous month, the largest monthly decline since April 2020," the national statistical office reported.
Excluding gasoline, however, prices jumped 6.6 percent year-on-year in July.
The spike in prices for food purchased from stores last month (9.9 percent year-on-year) was higher than June's by half a percent. The increase was particularly acute for baked goods due to the cost of wheat, but also substantial for sugar, eggs, fruit, tea and coffee.
In mid-July Bank of Canada surprised analysts by raising its key rate to 2.5 percent from 1.5 percent it's largest increase since 1998.
Canada's policy rate has already been raised three times this year.
For an optimal experience, please
