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Inflation rate falls to 0.1 per cent as price growth slows, StatCan reports

A loonie is pictured in Vancouver on April, 2014. Canada's annual inflation rate accelerated to two per cent last month as higher costs for airfares and fresh vegetables offset cheaper prices at the pump.THE CANADIAN PRESS/Jonathan Hayward

OTTAWA – Statistics Canada said the consumer price index was up 0.1 per cent compared with a year ago, as gasoline prices were down nearly 15 per cent.

Excluding the drop in gasoline prices, the inflation barometer would have increased at an annual rate of 0.7 per cent, matching the same reading for June.

The average economist estimate had been for a year-over-year increase of 0.5 per cent for July, according to financial data firm Refinitiv.

The statistics agency said the slower pace of price growth was broad-based, spanning goods and services.

Statistics Canada said air travel prices fell in July by 8.6 per cent, the first year-over-year decline since December 2015.

It said the result was due to airlines offering incentives for people to travel again, including reduced fees, discounts and promotions even as many flights remained cancelled or suspended because of the pandemic.