Inflation continued to move closer to the Bank of Canada target of two per cent in July, measuring 2.5 per cent compared to a year ago.
Statistics Canada released the Consumer Price Index report for July on Tuesday morning.
Inflation was down two-tenths of a percentage point from June and four-tenths of a percentage point from May.
The agency credited lower costs for travel tours, passenger vehicles, and electricity for last month's deceleration.
Following June's 7.4 per cent drop in travel tours, those came down another 2.8 per cent from July 2023. Travel accommodations dropped 3.7 per cent, and the price of air transportation fell 2.7 per cent year-over-year.
Improved inventory last month kept the rising cost of passenger vehicles to a 1.4 per cent increase from July 2023. The cost of a new car fell by one per cent from a year ago, while used vehicles cost 5.7 per cent less.
Canadians paid 1.9 per cent more at the gas pump than 12 months ago. That followed a 0.4 per cent rise in June. Statistics Canada said refinery shutdowns in the American Midwest cut supply.
Shelter costs rose 5.7 per cent. Those rose 6.2 per cent last month. Electricity prices slipped 0.8 per cent. Mortgage interest rate costs rose 21 per cent, rent rose 8.5 per cent, and fuel oil increased 3.5 per cent from July 2023.
At the grocery store, the cost of food rose 2.7 per cent year-over-year.
Statistics Canada plans to release the next Consumer Price Index for August on September 17, while the Bank of Canada makes a policy announcement on September 4.