The consumer price index rose 8.5% in the 12 months to July, down from the 9.1% rise recorded in June.
Updated yesterday at 9:54 am
The core index excluding the volatile elements of food and energy has risen 5.9% over the past 12 months.
The energy index is down in July compared to June.
The food index has risen 10.9% over the past year, the biggest 12-month rise since the period ending in May 1979.
On both a monthly and seasonally adjusted basis, prices did not move in July after rising 1.3% in June.
“This is a step in the right direction as several upward pressures on prices seem to be gradually fading in international markets,” said Benoit Durocher, senior economist at Desjardins in a note. It must be said that the rapid rise in interest rates in the United States and elsewhere in the world is increasingly a brake on demand. He expects another interest rate hike by the Fed. Same for RBC.
“US inflation fell in July from its highest level in several decades. Lower gas prices offset rising rents and lowered the inflation rate. Pressures on supply chains continued to ease. Domestic demand for goods is also slowing, as inflation weighs more on real purchasing power. Inflationary pressures are still too strong and too broad; the Fed should continue to raise rates,” RBC economists wrote in a note to clients released Wednesday morning.