Lower gas prices bring inflation down to 2.8 per cent in June: StatCan

Lower gas prices bring inflation down to 2.8 per cent in June: StatCan says Statistics Canada reported a cooling inflation trend in June, with the annual rate falling to 2.8%. That was down from 3.2% in May and slightly below what most economists expected. The agency attributed the slowdown largely to a 10% month-over-month drop in gasoline costs. Excluding gasoline, StatCan said inflation stayed at 2.2% from May to June, though it warned renewed hostilities have pushed fuel prices higher again. Grocery inflation also eased to 3.9% from 4.3% in May, with fresh fruit rising more slowly due to lower grape prices, while increases accelerated for items including chicken and some bakery and freezer goods. For travel, World Cup-related expenses in Toronto and Vancouver rose, with accommodation up about 20% year-over-year in Ontario and British Columbia and air transportation up 9.6% annually.