Inflation rate down to 2.8 percent in June

The Consumer Price Index (CPI) dropped to 2.8 percent in June, down from a 3.4 percent year-over-year increase in May, StatCan has reported. It is the first time in 27 months that the inflation rate was within the Bank of Canada’s target range of between one and three percent. The drop was driven by falling gasoline prices, down 21.6 percent year-over-year. However, grocery prices remain very high, up 9.1 percent annually in June.