BC's inflation rate 2nd-highest in Canada as national figure drops to lowest level in over 3 years

Canada’s annual inflation rate was at its lowest level in more than three years in July, according to the latest data from Statistics Canada.

The agency said prices rose at 2.5 per cent on a yearly basis last month, down from June’s 2.7 per cent.

That's the slowest increase since March 2021.

In British Columbia, the rate increased 0.2 points to 2.8 per cent in July. Only one province – New Brunswick – had higher inflation in July, at 2.9 per cent.

The decline in price rises was “broad-based,” according to StatCan, with lower costs identified in travel tours, passenger vehicles and electricity.

On a monthly basis, however, the Consumer Price Index increased by 0.4 per cent in July after falling 0.1 per cent in June.

Gas prices increased 2.4 per cent between June and July.

On a yearly basis, prices for used vehicles declined 5.7 per cent in July.

Housing costs, meanwhile, continue to surge, with July recording a 5.7 per cent yearly increase amid surging mortgage and rent payments.

But that is still slightly lower than the yearly growth rate in June, which was 6.2 per cent.

For groceries, prices have slowed considerably since the nightmare days of double-digit growth.

In July, the yearly increase in grocery prices was 2.1 per cent.

The Bank of Canada brought its main interest rate down to 4.5 per cent last month, the second consecutive drop in the cost of borrowing.

Tiff Macklem, the Bank's governor, said then: “If inflation continues to ease broadly in line with our forecast, it is reasonable to expect further cuts in our policy interest rate."

The central bank is set to make its next interest rate announcement on Sept. 4.