Global supply chain improvements and the impact of higher interest rates have helped moderate price growth in the Canadian economy as a whole.
What is driving inflation right now?
Food prices, which were once growing at double-digit annual rates, are now rising at a much slower pace. Last month, grocery prices were up 2.1% from a year ago.
The prices of many goods, such as clothes and shoes, have decreased completely compared to the previous year.
And the housing market has remained relatively quiet, despite fears earlier this year that interest rate cuts could lead to job losses.
However, some price pressures persist, particularly in service-producing sectors.
Utility prices were up 4.4% from last year, a trend economists say reflects higher wage growth.
Will interest rates go down?
Still, given the slowdown in overall inflation, forecasters widely expect the Bank of Canada to continue to cut interest rates at successive meetings.
Governor Tiff Macklem has signaled that the central bank is very concerned about the risk of keeping interest rates too high for too long.
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