Gas price rebound drove inflation up to 3% in July: StatCan
Statistics Canada says the annual rate of inflation accelerated to three per cent in July as motorists were once again paying more to fill up their tanks.
Inflation had cooled to 2.8% in June as the United States and Iran worked toward a peace agreement but fresh conflict in the Gulf region in July pushed global gas prices higher again.
StatCan says consumers were also paying more for airfares and travel tours last month as the energy shock made jet fuel more expensive and the FIFA World Cup drove up demand to U.S. destinations.
READ: Gas price rebound expected to send inflation higher in July
Canadians found some relief in the grocery aisles as annual price hikes on food bought from the store cooled sharply to 3.1% in July from 3.9% previously.
StatCan says price pressures were easing on fresh vegetables and chicken products but costs for fresh fruit were rising faster than in June.
The July inflation figures mark the Bank of Canada’s last look at price data before its next interest rate decision on Sept. 2.
