Canada’s annual inflation rate cooled more than expected to 2.8% in June, data showed on Monday, as gasoline costs fell sharply after the U.S. and Iran signed their memorandum of understanding to end the war.

Inflation Rate Details

The Consumer Price Index on a month-on-month basis decelerated by 0.4%, Statistics Canada said. Analysts polled had forecast an annual inflation rate of 2.9% and a monthly inflation rate of -0.2% in June.

Gasoline prices were the biggest contributor to the easing in inflation rate with the price of fuel purchased at the pump falling by over 10% in June. On a year-over-year basis, gasoline costs rose at a rate of 20.5% in June, down from a rise of 33.2% in the prior month.

Excluding gasoline, the CPI was unchanged in June compared with May, at 2.2%. Due to a continued increase in gasoline prices, transportation costs rose by 6.7% in June on an annual basis.

Other items that grew at more than 3% were food, which rose by 3.5% in June, and the recreation, education, and reading category, which increased by 3.8%.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.