Canada's annual inflation rate fell to 1.3% last month as consumers paid less for gasoline, Statistics Canada reported Friday. That's down from 1.5% in June.
The core rate of inflation, which strips out volatile elements like fresh produce and fuel, was unchanged from June at 2.1%.
Economists had expected the inflation rate to ease to 1.4%.
Pump prices fell by 5.6% in July, bringing their 12-month drop to 14%. Fuel oil and natural gas prices also were down by double digits from a year earlier.
StatsCan also reported clothing prices fell year over year, but consumers paid more for food and shelter.
On a monthly basis, prices fell 0.2% in July compared to June.
The core rate of inflation, which strips out volatile elements like fresh produce and fuel, was unchanged from June at 2.1%.
Consumer prices rose less in July than in June in seven provinces. But on an annual basis, the consumer price index was up more in New Brunswick (+2.5%) and in Newfoundland and Labrador (+3.4%) as both provinces boosted the provincial portion of the HST on July 1 by two percentage points.
