Statistics Canada Reports Drop in Inflation

Tuesday, 18 July 2023 10:32

By Linda Morgan

Inflation fell to 2.8 percent last month, but grocery prices remain high

The country's inflation rate fell last month.

Statistics Canada says it dropped from 3.4 percent in May to 2.8 percent in June.

The agency adds lower gas prices were a big factor in the slowdown.

However, Canadians still aren't seeing a lot of relief at grocery stores.

Grocery prices rose 9.1 percent on a year over year basis.

The Bank of Canada's rate hikes are also factoring into higher inflation through mortgage interest costs.

According to Statistics Canada, inflation would have risen two percent year over year without mortgage interest costs.

Earlier this month, the central bank increased interest rates in order to reduce inflation.

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