By Glenn Johnson
OTTAWA--Annual inflation in Canada slipped in July below its four-decade high, driven by a deceleration in gasoline prices, but customers still paid more for most products and services.
Canada's consumer-price index in July increased 7.6% from a year ago, Statistics Canada said Tuesday, after an 8.1% gain in the previous month.
The July report matched consensus market expectations for a 7.6% rise, based on lower energy prices and large base effects.
While gasoline prices declined on a monthly basis in July, prices for other non-durable goods like natural gas and groceries continued to rise. Price increases for in-person services such as flights, restaurant meals and hotel stays contributed to the month-over-month increase, Statistics Canada said.
Excluding gasoline, prices rose 6.6% year over year in July, following a 6.5% increase in June.
On a month-over-month basis, Canada's CPI rose 0.1% in July.
The average of the Bank of Canada's preferred measures for underlying core inflation in July rose to a record 5.3%, up from a revised 4.73% in the previous month. Core inflation provides a measure of price changes that strips out volatile goods such as food and energy.
On July 13, the Bank of Canada moved to curb inflation by lifting its target overnight rate by a full percentage point to 2.50%, its second consecutive increase after a previous 0.5% hike. The central bank has signaled it needs to tame price increases and anchor inflation expectations.
The central bank's mandate is to set rate policy to achieve and maintain 2% inflation.
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(END) Dow Jones Newswires
August 16, 2022 08:52 ET (12:52 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.