Canada's annual inflation rate softened in July to 2.1 per cent, down from 2.4 per cent in June.

Still, prices were up across the board, with the cost of food and shelter leading the way.

Statistics Canada says all 12 components of the Consumer Price Index edged higher.

As well, prices were up in every province with Ontario, Saskatchewan and Alberta seeing the highest gains.

Core inflation, the number the Bank of Canada closely monitors and which excludes some items from the volatile energy and food categories, rose by 1.7 per cent, down from 1.8 per cent in June.

On a seasonally-adjusted basis, inflation was down by 0.1 per cent in July compared with the previous month, when it increased by 0.3 per cent.