Canada’s inflation reaches lowest rate since June 2021 [Video]

OTTAWA –

Canada’s inflation rate fell to 3.4 per cent in May — the lowest it’s been since June 2021.

The decline is likely welcome news for the Bank of Canada, which is gearing up for its next interest rate decision on July 12 after raising a quarter-percentage point to 4.75 per cent earlier this month.

Statistics Canada reported Tuesday the slowdown was largely due to lower gasoline prices compared to a year ago.

However, the long-awaited decline in food inflation has yet to come through in Canada. Grocery prices were up nine per cent on an annual basis, showing little improvement from April.

Meanwhile, the slowdown in the headline rate comes after inflation ticked up in April to 4.4 per cent, marking a slight reversal of the progress made since last summer.

The Bank of Canada justified its most recent rate hike in part by pointing to the slight rise in …