Canada’s inflation rates inched their way back up in July after showing signs of slowing down last month, rising at 3.3% annual pace in July, Statistics Canada said Tuesday.
The increase comes after inflation rates fell to 2.8% in June, falling within the the Bank of Canada’s target range of 1% to 3% for the first time since March 2021.
According to Statistics Canada, gasoline prices had been a driving force of dragging down the overall rate in the past year. Gasoline prices fell 9.2% in July last year; however, the trend has discontinued with pump prices going up 0.9% in July this year. The increase in gas prices is a factor in driving up the overall inflation rate, Statistics Canada said.
However, gasoline prices weren’t the only swiftly changing energy prices. The price of electricity rose at 11.7% in July compared to the year before. Prices of electricity rose more than double in Alberta, increasing 127.8% in July 2023, compared to a year ago.
Grocery prices on the other hand, that have still been going up at significant prices, showed a lower rise than the month before. Prices for groceries rose 8.5% in July, compared to a 9.1% increase in June. According to Statistics Canada, slower price growth was mainly because of fresh fruits and bakery products.
Prices for fresh fruit rose 4.1% in July, following a 10.4% increase in June – the biggest decline in fruit prices in one month since February 2008. Price of bakery products rose 9.8% on an annual rate, compared to 12.9% in June.
According to the report, people in Nova Scotia saw gas prices rise at the fastest monthly pace in Canada – increasing by 14% in July. The higher gas prices were because of the introduction of the federal carbon tax in the province and higher wholesale prices, the report said.