ANNUAL INFLATION DIPS IN JULY TO 7.6 PERCENT AS GAS PRICES DROPPED BUT FOOD AND RENT COSTS WENT UP

Aug 16, 2022

By Jane Brown

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As economists widely anticipated annual inflation in Canada slowed to 7.6 percent in July.

The year over year cost of living rate hit a nearly 40-year-high of 8.1 per cent in June, but since then, gas prices have declined significantly.

But while gas prices were down, food prices rose at the fastest pace since August of 1981, with prices up by almost 10 per cent since July of 2021.

And as mortgage costs go up with higher interest rates, the report notes rent prices are accelerating, rising faster in July than the previous month.

John Wright is executive vice-president at Maru Public Opinion.

He told Zoomer Radio’s Fight Back with Libby Znaimer, his polling suggests Canadians are not panicked about inflation nor do they feel there’s a recession looming.

“The numbers didn’t really move from June to now,” Wright explained, “You would expect that people would say, ‘it’s getting worse, I’m pulling my horns in even more, I think we are in a recession’ but there was none of that. In fact, in the United States my numbers show Americans actually easing themselves off of their belt tightening.”

Bank of Canada Governor Tiff Macklem is hoping interest rate hikes will bring inflation back down to the two per cent target without triggering a serious economic downturn.

The next announcement is scheduled for September 7th.

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