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MNI BRIEF: Canada July CPI Slows To 7.6%

OTTAWA (MNI)

Canada's inflation rate slowed to 7.6% in July from 8.1% in June as gasoline prices retreated sharply.

The consumer price index rose 0.1% on the month, the seventh straight gain, Statistics Canada said Tuesday. Gasoline prices rose 36% year over year in July compared with June's 55% jump and on a monthly basis they fell 9.2%, partly because of a tax cut in the province of Ontario.

Canada is more likely to face a recession than a wage-price spiral as the central bank tightens to pull the economy back into balance, a government labour adviser has told MNI. (MNI INTERVIEW: Canada Faces Recession, Not Wage Spiral-Adviser)

MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com
MNI Ottawa Bureau | +1 613-314-9647 | greg.quinn@marketnews.com

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