OTTAWA -
Canada's annual inflation rate slid to the lowest level in 56 years last month, as overall prices fell 0.9 per cent from where they stood last July.
It was the second straight month that Canada's inflation rate has dipped into negative territory, but unlike in June when it decreased 0.3 per cent, the unusual phenomenon was more widespread this time.
In July, prices fell on an annual basis and on a month-to-month basis, dipping 0.3 per cent from June, with eight provinces recording a negative inflation rate.
However, while the national rate was down, some of the highest increases in the country were right here in Saskatchewan.
Saskatchewan's provincial inflation rate was 0.9 per cent, just down from one per cent in June. Only Nunavut, at 1.5 per cent had a higher rate. These were the only two rates in Canada above zero.
As for major cities, Regina had the top rate across the country at 1.5 per cent. The only other city with a rate above zero was Saskatoon at 0.8 per cent.
Nationally, economists say there is little concern that deflation - a broadbased and persistent decline in prices that could exact further damage to the economy - is setting in Canada, as it did in Japan during the 1990s.
That's because only three of the major components tracked by Statistics Canada are experiencing de-inflation and most of that is based on falling gasoline prices.
In July, consumers paid 4.1 per cent less at the pump than they did the previous month, and 28.3 per cent less than they did last July.
Besides lower pump prices, the cost of purchasing a car was 4.3 per cent lower than last year, shelter prices fell two per cent, mortgage interest costs were 0.1 per cent lower, and clothing and footwear cost 2.1 per cent less than last July.
The key contributor to inflationary pressure continued to be food prices, which were five per cent higher in July on an annual basis. But that was better than the 5.5 per cent increase recorded in June, and 6.4 per cent hike of May.
