Canada’s inflation rate decelerated 1.7 percent in July, from 1.9 percent of the previous month, driven by a fall in gasoline prices after the elimination of consumer carbon tax. Statistics Canada reported Tuesday.
Gasoline prices dropped by 16.1 percent year after year and 0.7 percent less monthly after a high fire between Iran and Israel and greater production by the organization of oil exporting countries and its allies.
Despite the number of headlines, seven main components in the consumer price index basket increased in July, said Statistics Canada.
Excluding gasoline, the CPI increased 2.5 percent in July, coinciding with increases in June and May. Excluding indirect taxes, inflation accelerated 2.3 percent last month, below 2.5 percent in June.
But central inflation, which the Bank of Canada prefers to observe when making its monetary policy decisions, remained high around three percent.
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