The Canadian Statistics Agency said that the annual inflation rate in the country rose to 3.3 percent in July, representing an increase in the pace of price growth since June.

This comes after inflation dropped to 2.8 percent in June, falling within the Bank of Canada’s target range of one to three percent for the first time since March 2021.

The federal agency also stated that the rise in inflation for July was due to gasoline prices, which decreased less dramatically compared to prices a year ago.

The report noted that gasoline prices last month were compared to the time when prices significantly dropped in July 2022, amid growing concerns about an economic slowdown.

At the same time, grocery prices rose 8.5 percent year-on-year, although they increased at a slower rate than in June, largely due to smaller increases in the prices of fruits and baked goods.

The Bank of Canada expects inflation to hover around three percent over the next year, before steadily declining to two percent by mid-2025.