(OTTAWA) The inflation rate measured by the consumer price index in Canada was 2.8% in June, still down from the rate of 3.4% measured in May.

According to Statistics Canada, while the slowdown in inflation was fairly widespread, it was once again lower gasoline prices that contributed the most to this slowdown.

Excluding gasoline prices, Canada’s headline inflation rate in June would have been 4%, down slightly from 4.4% in May.

On the other hand, grocery price inflation, still very high at 9.1%, and the sharp rise in mortgage interest costs contributed the most to overall inflation in the Canadian economy in June.

In its interest rate hike statement last week, the Bank of Canada said it expected the inflation rate to hover around 3% over the next year, before declining to the 2% target by mid-2025.