Annual pace of inflation rose to 3.7 per cent in July

OTTAWA — Statistics Canada says annual pace of inflation rose to 3.7 per cent in July, the biggest increase since May 2011.

The year-over-year increase in the consumer price index compared with a 3.1 per cent increase in June.

Excluding gasoline, the consumer price index for July increased 2.8 per cent compared with a year ago.

Statistics Canada says only part of the year-over-year rise is due to comparing prices to the lows seen one year ago.

The largest driver of overall price growth stemmed from the country’s housing market, as homeowner replacement costs rose 13.8 per cent year-over-year, the largest increase since October 1987.

Food prices increased by 1.7 per cent in July compared with July 2020, with Statistics Canada noting prices for food purchased at restaurants grew by 3.1 per cent, the highest increase since January 2019.