17.1°C Vancouver

Aug 20, 2024 4:05 PM - The Canadian Press

Canada’s inflation rate fell to 2.5% in July, lowest since March 2021

Share On
canadas-inflation-rate-fell-to-2-5-in-july-lowest-since-march-2021
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.(Photo: The Canadian Press)

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.

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 up 2.1 per cent from a year ago.

However, some price pressures persist, particularly in services-producing sectors.

Prices for services were up 4.4 per cent from a year ago, a trend that economists say reflects high wage growth.

Nevertheless, with the backdrop of slowing price growth overall, forecasters are widely expecting the Bank of Canada to continue cutting interest rates at back-to-back meetings.

Governor Tiff Macklem has signalled that the central bank is increasingly concerned about the risk of keeping interest rates too high for too long.

At the last interest rate announcement, Macklem said the governing council decided to lower its policy rate, in part to help the economy pick up speed again.

Its key interest rate now stands at 4.5 per cent.

The central bank is scheduled to hold its next interest rate announcement on Sept. 4.

Latest news

prime-minister-carney-says-canada-will-recognize-a-palestinian-state
CanadaJul 30, 2025

Prime Minister Carney says Canada will recognize a Palestinian state

Canada intends to recognize the state of Palestine at the United Nations General Assembly this September. Prime Minister Mark Carney made the announcement today in Ottawa after holding a virtual meeting with his cabinet. Carney says Palestinian statehood depends on elections next year that do not involve Hamas. The prime minister's announcement comes after British Prime Minister Keir (KEER') Starmer said the U-K would officially recognize a Palestinian state if Israel does not implement a ceasefire and drastically scale up aid in the Gaza Strip. Multiple humanitarian groups say starvation is
world-swimming-championship-2025-canada-wins-bronze-in-4x100m-mixed-medley-relay
CanadaJul 30, 2025

World Swimming Championship 2025: Canada wins bronze in 4X100m mixed medley relay

Canadian swimmers performed well on day 4 of the World Swimming Championships being played in Singapore. On one hand, Canada won a bronze medal today and on the other hand, Summer McIntosh, Kylie Masse and Ingrid Wilm did well in their respective events. Today, Canada won the bronze medal in the 4x100-meter mixed medley relay with a timing of 3 minutes 40.90 seconds, thanks to the performances of Kylie Masse, Oliver Dawson, Josh Liendo and Taylor Ruck. In the semi-finals of the women's 200m butterfly event, Summer McIntosh entered the final with a timing of 2 minutes 6.22 seconds. The 18-year-
prime-minister-mark-carney-is-having-a-virtual-meeting-with-his-cabinet-today
CanadaJul 30, 2025

PM Carney assembling cabinet today to talk U.S. trade, Middle East

Prime Minister Mark Carney is meeting virtually with his cabinet today to discuss the state of trade negotiations with the U.S. and the situation in the Middle East.The meeting is scheduled for 2 p.m. ET.Minister responsible for Canada-U.S. Trade Dominic LeBlanc is in Washington today meeting with U.S. officials.Carney said Monday that Canada's negotiations with the United States are in an "intense phase" after President Donald Trump clinched a critical agreement with the European Union.Trump told reporters last week that Canada wasn't a priority ahead of his Aug. 1 deadline to make trade deal
canadian-government-may-introduce-bail-reform-bill-in-fall
CanadaJul 30, 2025

Canadian government may introduce bail reform bill in fall

During this spring’s federal election, the Liberals promised to "move aggressively" to implement stricter bail laws by introducing a reverse onus for a number of offences. A reverse onus moves the burden of proof from the prosecutor to the accused — meaning they would have to justify being granted bail. The Criminal Code already has a reverse onus for bail in place for many serious offences, including murder. The Liberals would add new offences to that list, including car thefts involving violence or those conducted for a criminal organization, and home invasions and some human trafficking
coquitlam-rcmp-announce-guilty-plea-after-lengthy-firearm-related-offence-investigation
BCJul 29, 2025

Coquitlam RCMP announce guilty plea after lengthy firearm related offence investigation

Following a lengthy police investigation into a 2021 shooting incident that occurred in Coquitlam, 36-year-old Sukhdeep Singh Pansal of Delta, British Columbia, has plead guilty to firearms related charges and has been sentenced to 38 months in prison. On January 16, 2021, at approximately 12:05 a.m., Coquitlam RCMP frontline officers responded to a report of shots fired from a high-rise building located in the 600 block of Whiting Way, Coquitlam. A woman was found with a non-life-threatening gunshot wound and was taken to hospital. The Lower Mainland District Emergency Response Team (ERT) ass

Related News