Canada's inflation rate dips to 2.5% in July

Canada's annual inflation rate slowed to 2.5 per cent in July — down from 2.7 per cent in June, Statistics Canada said Tuesday.

The national statistics agency attributed the deceleration in part to lower prices for travel, passenger vehicles and electricity.

Price pressures in Canada have steadily eased this year, bringing the annual inflation rate below three per cent since January.

The Bank of Canada has been encouraged by this progress and lowered its key interest rate at its last two decision meetings.

Governor Tiff Macklem has signalled more rate cuts are coming, as long as inflation continues to slow.