Inflation cools to 2.7% in June, but grocery prices heating up again – National

Statistics Canada says the annual rate of inflation slowed in June, but renewed pressures are showing up at the grocery store.

The agency’s consumer price index reported an annual inflation rate of 2.7 per cent in June. That follows an uptick to 2.9 per cent in May.

Slower rises in gasoline prices than a year ago were cited as the main reason for the decline.

But the pace of price hikes at the grocery store picked up for the second month in a row, rising 2.1 per cent year-over-year.

The Bank of Canada will be closely scrutinizing June inflation figures as the central bank prepares for its next interest rate decision on July 24.

More to come…