A 16.1 per cent drop in gasoline prices year-over-year helped decelerate inflation last month to 1.7 per cent, down two-tenths of a percentage point from June.
The cost of gas has been relatively stable since April, but Statistics Canada also noted that lower crude oil prices and an increase in supply helped lower prices at the pump.
Without gas, the Consumer Price Index was 2.5 per cent in July.
Prices in July also decelerated for air transportation, which was down 10.6 per cent, and cellphone services, which fell by 4.8 per cent. Natural gas bills dropped 7.3 per cent, compared to a 14.1 per cent decline in June.
Where costs went up was at the grocery store. Canadians paid 3.4 per cent more last month. Unfavourable weather in coffee-growing regions boosted the cost of your morning cup by 28.6 per cent. Confectionery jumped another 11.8 per cent, while the cost of grapes drove up fresh fruit costs by 3.9 per cent year-over-year.
As of last month, Statistics Canada said consumers paid out 27.1 per cent more for groceries than they did in July 2020.
Rent also climbed another 5.1 per cent in July compared to July 2024, and mortgage interest costs were up 4.8 per cent after June's 5.6 per cent jump.
Canada's inflation rate was on the lower end of the spectrum of G7 nations in July. The United States' inflation rate was 2.8 per cent. Germany's rate was 2 per cent. It was 3 per cent in Japan, 1.7 per cent in Italy, and in France, inflation was 1 per cent. The United Kingdom is expected to release its rate soon, but the estimate was 3.6 per cent.
Statistics Canada will release its next Consumer Price Index report on September 16.
