Canada's Annual Inflation Rate Ticks Up to 3% in July
Canada's annual inflation rate ticked up to 3% in July, surpassing some economists' expectations. According to Statistics Canada, this marks a 0.2 percentage point increase from June's 2.8%. The majority of economists polled by LSEG Data & Analytics predicted an annual rate of 2.9%, which was still higher than the actual figure.
The main driver behind July's inflation increase was a significant jump in gas prices, which rose 25.7% compared to last year. This was followed closely by air transportation costs, which increased by 12% due to higher jet fuel costs. However, some areas of inflation actually cooled down, such as grocery store prices, which rose only 3.1% on average.
Statistics Canada noted that core measures of inflation remain around the 2% mark, supporting the Bank of Canada's current 'on hold' stance regarding interest rates. The central bank is aiming to keep consumer inflation within a range of 1-3% to maintain price stability and promote economic growth.