Dropping gas prices slow inflation in July

Cheaper prices at the gas pumps slowed the pace of inflation across Canada for the first time in months.

Statistics Canada reported on Tuesday the national inflation rate retreated to 7.6 per cent in July, easing from the 39-year high of 8.1 per cent in the previous month.

In Saskatchewan, the inflation rate remained unchanged from June to July, staying at 8.1 per cent.

In Regina, the rate increased to 8.2 per cent from 8.1 in June, while in Saskatoon, the rate fell to 7.4 per cent from 7.6 in the same time frame.

While gas prices declined, food prices rose at the fastest pace seen in four decades and higher mortgage rates accelerated the price of rent.

The latest inflation reading will be a factor in what the Bank of Canada does with borrowing rates on Sept. 7.