Canada's annual inflation rate eases to 1.7%

Canada’s annual inflation rate eased to 1.7% in July from 1.9% in the prior month as lower year-on-year gasoline prices kept the consumer price index low, but core measures of inflation stayed sticky, data showed on Tuesday.

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Analysts polled by Reuters had forecast the annual inflation rate at 1.8% and the monthly inflation rate at 0.3%. The CPI increased by 0.3% in July from 0.1% in June on a monthly basis, Statistics Canada said.

Gasoline prices dropped by 16.1% on a yearly basis in July, following a 13.4% decline in June.

On a monthly basis the price of he fuel dropped as geopolitical tensions eased and crude oil producing nations increased output.