Inflation in Canada rose at a 3% annualized rate in July of this year, up from 2.8% in June.
Higher prices for gasoline due to the Iran war were once again the primary factor in raising inflation, said Statistics Canada.
Prices for gasoline at the pumps grew 25.7% year-over-year in July as the Strait of Hormuz waterway near Iran remains effectively closed.
The Consumer Price Index (CPI), which measures inflation, rose 0.5% month-over-month in July from June. On a seasonally adjusted monthly basis, the CPI rose 0.3%.
Also contributing to higher inflation in July were prices for travel tours (up 15.2%), as well as hotels and flights to the U.S.
Statistics Canada said the higher travel related prices coincided with the summer tourism season and also the World Cup soccer tournament that was held in North America.
Prices for air transportation rose 12% year-over-year in July as airlines pass on higher jet fuel costs to travelers.
However, prices for food purchased from stores grew at a slower pace in July (up 3.1%) compared with June (up 3.9%) on a year-over-year basis.
Inflation increased in every Canadian province during July compared with June, except for Ontario, where it was unchanged at 2%.
Nova Scotia saw the biggest jump in inflation among the provinces during July at an annualized rate of 5%.
