Inflation in Canada: Rate lowest in three years [Video]

OTTAWA –

Canada’s annual inflation rate fell to 2.5 per cent last month, matching economists’ forecasts and solidifying expectations for a third consecutive interest rate cut in September.

Tuesday’s consumer price index report saysprices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.

Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments.

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The federal agency noted, however, that shelter price growth slowed last month to 5.7 per cent year-over-year, down from 6.2 per cent in June.

Inflation has remained below three per cent since January and has steadily trended lower, highlighting the significant progress made in the fight against high inflation.

“There’s more to go in terms of reaching price stability as Canadians feel the pinch and pull back on spending,” wrote Andrew …