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Canada experiences lowest inflation rate at 3.4 percent since June 2021

Tripura Net
Tripura Net
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Toronto/IBNS: The deceleration of Canadas inflation rate to 3.4 percent this year till May was largely due to sharply lower gasoline prices by more than 18 percent compared to the record highs this time last year, Statistics Canada said Tuesday,

With the nine percent increase in grocery prices in Canada on an annual basis showing little improvement from April, the long-awaited decline in food inflation has yet to come.

Based on incoming economic data, including Tuesdays inflation report, the Bank of Canada is expected to make its next interest rate decision on July 12 after having raised a quarter-percentage point to 4.75 percent earlier this month.

The central bank is paying particular attention to its core measures of inflation.

Canadas slower pace of inflation is due largely to prices being compared to those elevated levels in prices in the first half of 2022 after the Russian invasion of Ukraine.

(Reporting by Asha Bajaj)

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