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)