Canada's annual inflation rate fell to 2.5 per cent last month, matching forecasters' expectations as price pressures continue to retreat.
Tuesday's consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.
Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments.
The federal agency noted, however, that shelter price growth slowed last month to 5.7 per cent year-over-year, down from 6.2 per cent in June.
July marked the slowest annual increase in the consumer price index since March 2021, highlighting the significant progress made in the fight against high inflation.
Grocery prices, which at one point were growing at a double-digit annual rate, are now rising at a much more modest pace. Last month, grocery prices were up 2.1 per cent from a year ago.
However, some price pressures persist, particularly in services-producing sectors.
Prices for services were up 4.4 per cent from a year ago, a trend that economists say reflects high wage growth.
Nevertheless, with the backdrop of slowing price growth overall, forecasters are widely expecting the Bank of Canada to continue cutting interest rates at back-to-back meetings.
Governor Tiff Macklem has signalled that the central bank is increasingly concerned about the risk of keeping interest rates too high for too long.
At the last interest rate announcement, Macklem said the governing council decided to lower its policy rate, in part to help the economy pick up speed again.
Its key interest rate now stands at 4.5 per cent.
The central bank is scheduled to hold its next interest rate announcement on Sept. 4.
This report by The Canadian Press was first published Aug. 20, 2024.
Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.
The minimum income needed to buy a home in Canada lowered in July, according to a new report that cites dropping mortgage rates and lowering average home prices.
Police divers resumed searching Tuesday for six people, including British tech magnate Mike Lynch, believed trapped some 50 metres (164 feet) underwater in the hull of a superyacht that sank in a storm off Sicily.
Many of us pay our bills using online banking because it's simple, fast and usually problem free, but if you make a mistake and pay the wrong amount, it can sometimes be difficult to get your money back.
The Conservative Party of Canada has deleted a video that promoted Canadian values but featured what the Defence Minister's office says are Russian fighter jets.
A suspect who police said confessed to killing 42 women and was being detained over the discovery of dismembered bodies in Kenya's capital has escaped from police custody, officials said Tuesday.
Two 18-year-old men have been charged with murder in the killing of former 'General Hospital' actor Johnny Wactor.
Statistics Canada says the median family after-tax income in 2022 fell compared with 2021, after adjustment for inflation, with young people being the hardest hit.
Tech tycoon Mike Lynch, one of six people missing from a sunken yacht off Sicily, had been trying to move past a Silicon Valley debacle that had tarnished his legacy as an icon of British ingenuity. Here's what we know about him.
Frustrated ticketholders are speaking out after multiple groups with wheelchair users were refused entry to a lounge at BC Place with accessible seating.
Zanne Fernwood was running some errands on her motorbike in Toronto's Greektown area late Monday afternoon when she unexpectedly became a witness to a spectacular crash involving a black hot rod.
Several people were injured during a rollover crash at a busy intersection in Surrey, B.C., on Monday afternoon, including an infant.
Residents of a Manitoba community are in shock following an apparent triple homicide and suicide last week, as RCMP continues to investigate.
The Transportation Safety Board of Canada says it found a number of safety deficiencies in its investigation into a Toronto ferry crash that injured 12 people two years ago.
Many of us pay our bills using online banking because it's simple, fast and usually problem free, but if you make a mistake and pay the wrong amount, it can sometimes be difficult to get your money back.
Former U.S. Rep. George Santos pleaded guilty Monday to committing wire fraud and aggravated identity theft in connection with the federal fraud case that led to his expulsion from U.S. Congress.
Tech tycoon Mike Lynch, one of six people missing from a sunken yacht off Sicily, had been trying to move past a Silicon Valley debacle that had tarnished his legacy as an icon of British ingenuity. Here's what we know about him.
A suspect who police said confessed to killing 42 women and was being detained over the discovery of dismembered bodies in Kenya's capital has escaped from police custody, officials said Tuesday.
Maria Branyas, an American-born Spaniard considered the world's oldest person at 117 years old, has died, her family said on Tuesday.
The Israeli military said Tuesday that it recovered the bodies of six hostages taken in Hamas' Oct. 7 attack that started the war in Gaza, as U.S. and Arab mediators tried to advance an agreement to halt the fighting and release scores of other militant-held captives.
U.S. intelligence officials said Monday they were confident that Iran was responsible for the hack of Donald Trump's presidential campaign, casting the cyber intrusion as part of a brazen and broader effort by Tehran to interfere in American politics and potentially shape the outcome of the election.
The demands of protecting parliamentarians and other public figures are placing 'significant strain' on RCMP personnel and taking resources from other federal policing priorities, warns an internal briefing note.
Speaking from the Democratic National Convention in Chicago on Monday, the Canadian ambassador to the United States says Canada is 'starting from a very good position' with the Democrats’ presidential ticket of Kamala Harris and Tim Walz.
Canada’s ambassador to the United States says she’s telling Americans about the important relationship between the neighbours as Democrats develop their foreign policy and build unity behind Vice-President Kamala Harris at the party's national convention.
A man who says he suffers from chronic and worsening mental health issues is among those launching a court challenge of the federal government assisted dying law, which excludes people suffering solely from a mental disorder.
Nova Scotia and Prince Edward Island are the only provinces that offer post-secondary students free vaccination against meningitis B, a rare but deadly bacterial infection.
Foreign Affairs Minister Mélanie Joly says Canada will provide $1 million to help stem mpox in Africa as her government assembles a long-delayed plan on how to engage with the continent.
A rocket engine exploded during a test launch at a new spaceport in the Shetland Islands off northern Scotland, the rocket manufacturer said Tuesday.
An archeology student unearthed seven 'spectacular' Viking-era curled silver arm rings earlier this year north of Denmark's second-largest city, a Danish museum said on Monday, adding the finding has ties to Russia, Ukraine and the British Isles.
Social media platforms TikTok, Facebook, Instagram and Snapchat spent last school year embroiled in a lawsuit accusing them of disrupting learning, contributing to a mental health crisis among youth and leaving teachers to manage the fallout.
A new movie starring Hollywood heavyweights Robert Pattinson, Jennifer Lawrence and LaKeith Stanfield began filming in Calgary Monday.
Harvey Weinstein will remain in custody in New York while awaiting retrial on rape and sexual assault charges in Manhattan, prosecutors confirmed Monday.
Two 18-year-old men have been charged with murder in the killing of former 'General Hospital' actor Johnny Wactor.
Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.
The minimum income needed to buy a home in Canada lowered in July, according to a new report that cites dropping mortgage rates and lowering average home prices.
While interest rates have started to come down, borrowers, and lenders, are still feeling the strain. Just how much stress they're under will be a main focus for analysts as the big banks gear up to report third-quarter results.
Young people on social media are showing off their 12-year-old water bottles, sweaters from high school with patched holes and dish rags made from cut up old T-shirts.
A witty pun about a sailing trip has been crowned the funniest joke told at this year's Edinburgh Festival Fringe.
One artist has developed a cult following and acclaim that eclipsed his 'traditional' paint and sculpture works.
The Montreal Canadiens have acquired star forward Patrik Laine and a second-round pick in the 2026 NHL draft in a trade with the Columbus Blue Jackets for defenceman Jordan Harris.
A former NFL player accused of drunkenly hitting one man and urinating on another during a flight from Boston to Dublin has been arrested and charged with disorderly conduct, the Massachusetts State Police said Monday.
The Edmonton Oilers traded defenseman Cody Ceci and a third-round draft pick in 2025 to the San Jose Sharks on Sunday for defenseman Ty Emberson.
BMW is recalling more than 720,000 vehicles in the United States due to an issue with the water pump's electrical connector that could potentially lead to a fire.
General Motors said Monday it is laying off more than 1,000 salaried employees at its software and service units worldwide.
A man from the Greater Toronto Area said he was refused a car rental because he wanted to pay with a prepaid credit card.
The Twilite Drive-in Theatre has been serving movie lovers for decades.
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In light of World Honey Bee Day on Saturday, local beekeepers recognized the crucial role that honey bees play in the ecosystem.
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At least one runner at the Edmonton marathon on Sunday will be strapping on a pair of stilettos at the starting line.
London, Ont.'s Tessa Virtue has welcomed her first child with husband and Toronto Maple Leafs defenceman, Morgan Rielly.
When the Bush Creek East fire went from a slow burn to a full conflagration on Aug. 18 of 2023, members of the Skwlax te Secwepemculecw First Nation fled for their lives, some jumping into canoes and boats to escape the raging flames. One year later, they spoke about their experiences and celebrated everyone’s safe escape.
The union representing Air Canada pilots says job action could happen next month if a new collective agreement isn’t reached.
Several people were injured during a rollover crash at a busy intersection in Surrey, B.C., on Monday afternoon, including an infant.
Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.
Many of us pay our bills using online banking because it's simple, fast and usually problem free, but if you make a mistake and pay the wrong amount, it can sometimes be difficult to get your money back.
The minimum income needed to buy a home in Canada lowered in July, according to a new report that cites dropping mortgage rates and lowering average home prices.
One of two men involved in a fatal crime spree that rocked a rural area east of Calgary will be in court Tuesday morning as police continue to search for another man.
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The number of organizations and leaders in Ottawa pulling out of Capital Pride events continues to grow in response to a statement the group made expressing solidarity with Palestinians last week.
Fall hasn't started yet, but it sure feels like it outside.
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The head of the Alberta Teachers' Association says the rollout of new policies banning cellphone use in classrooms starting this fall has some teachers confused about how they'll be expected to follow them.
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The minimum income needed to buy a home in Canada lowered in July, according to a new report that cites dropping mortgage rates and lowering average home prices.
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Michael Gordon Jackson took the stand under oath Monday in a turn of events at court which turned sentencing submissions into a sentencing hearing.
Day one of an inquest into the death of Nicole Lafontaine, a 31-year-old woman who fell from a fifth story window of Regina's YWCA building, has officially wrapped.
Saskatchewan RCMP say a male youth from Carry the Kettle Nakoda Nation is facing 10 charges, including manslaughter, after an 18-year-old woman was shot dead in Wolseley, Sask. early Sunday morning.
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A Cambridge woman is calling for action after her dog was attacked by two off-leash dogs late last month.
The Dutchie’s Fresh Food Market on Gateway Park Drive in Kitchener appears to be closed.
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The mayor of Sandy Bay, a remote northern village, said the community has declared a state of emergency, as an intense wildfire threatens the area.
A Saskatoon man faces a second-degree murder charge after the remains of Jordan Lee Morin were found at a home in Riversdale on Friday.
Many of us pay our bills using online banking because it's simple, fast and usually problem free, but if you make a mistake and pay the wrong amount, it can sometimes be difficult to get your money back.
The minimum income needed to buy a home in Canada lowered in July, according to a new report that cites dropping mortgage rates and lowering average home prices.
In hopes that it will help their investigation, Greater Sudbury Police have released the name of a man who was found dead at Bell on July 31
Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.
Critics of leadership at London Health Sciences Centre (LHSC) are calling the departure of two high paid executives a step in the right direction.
An arrest was made after a two-hour standoff in West Lorne Monday afternoon.
Thick smoke has blanketed much of Barrie after a fire broke out at a scrapyard in central Barrie on Monday morning.
Shawn Ladoceur is one of several individuals with intellectual disabilities who lived at one of two group homes that were recently closed by the not-for-profit organization due to a lack of provincial funding.
City of Barrie wants the public's feedback about creating another disc golf course in Barrie.
Statistics Canada says the annual inflation rate fell to 2.5 per cent last month, down from 2.7 per cent in June, as price pressures across the economy continued to fade.
An Essex County family is hoping for help after a recent turn of events left them searching for solutions to find proper long term care for a loved one.
Windsor police say it’s unlikely that victims of an alleged conman contractor will ever recover their money. Robert James Jones was arrested last week and faces 10 counts of fraud over $5,000.
The federal government has fined a Vancouver film company and its drone operator $30,000 for unlawful use of a drone to capture video of endangered killer whales off the British Columbia coast.
The Sooke School District has acquired a 7.2-acre plot of land in North Langford to build a middle school, as enrollment within the district continues to grow.
The union representing Air Canada pilots says job action could happen next month if a new collective agreement isn’t reached.
Mounties in West Kelowna are looking for a suspect they say broke into a local home while a mother and her child were inside.
When the McDougall Creek fire sparked on Aug. 15, 2023, no one could’ve imagined it would mushroom in size, consuming homes, infrastructure and livelihoods in the West Kelowna area with damage that will take years to address.
Thieves in B.C.'s Okanagan recently made off with an enclosed trailer containing a classic muscle car, local police say.
The average price of a home in Lethbridge has jumped by more than 19 per cent over the past year, statistics indicate.
Trucks have started rolling into what will become Lethbridge’s Whoop-Up Days midway.
More than 1,500 backpacks have been filled with back-to-school essentials for those in need ahead of the school year.
A bacon-flavoured vodka designed specifically for a popular Canadian cocktail and made in Sudbury, Ont., is now being carried by the LCBO.
An Ontario Provincial Police officer noticed a strong smell of cannabis during a traffic stop Sunday in Espanola. Further investigation uncovered drugs and weapons.
After a crow tested positive for West Nile virus, Algoma Public Health says a human case has also been confirmed.
Newfoundland has caught a lucky break with Hurricane Ernesto expected to pass south of the island, but the fast-moving storm will still bring a lot of rain in a short time overnight on Monday, Environment Canada says.
The project of the university's Folklore and Language Archive aims to find the first names of women who contributed remedies, recipes and local beliefs, but were only credited as a 'missus,' with their husband's last name and often his first name or initials.
Hurricane Ernesto is expected to pass Bermuda and make its way south of the Maritimes on Monday, then approach Newfoundland and Labrador later that day, a Canadian meteorological expert advised on Friday.
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