Canada Recorded its first decline in inflation since June 2020 last month, when compared year-over-year.
“7.6% annual inflation rate in July”
That signals the smallest increase since December 2021, Stats Canada stated on Tuesday, primarily due to slowing gas prices.
Global demand for crude oil slows from the constrained COVID-19 restrictions in China, and less need for gasoline in the US, StatCan’s also said – although it also noted food prices surged at their fastest pace since August 1981.
The cost of food in grocery stores increased by almost 10% yearly in July due to higher prices in baked goods (up 13.6% year over year), eggs (up 15.8%) and also fresh produce (up 11.7%).
Far from the Bank of Canada’s target of 2% inflation, July’s break is welcomed by all Canadians in an economic climate that continues to balloon throughout 2022.
In June, inflation hit 8.1%, a 40-year high. The significant rise has been the key factor in a series of interest rate hikes announced by the Bank of Canada to curb household spending and reign in inflation.