Inflation down across Canada, up slightly in British Columbia

Inflation may be cooling across most of Canada, but people are still feeling the pinch of higher prices, especially in B.C. where the cost of goods increased slightly in July, according to Statistics Canada.

The agency said year-over-year, inflation across the country was 7.6 per cent in July, that's lower than June when it was 8.1 per cent. Most of the decrease is driven by lower gas prices.

At the same time, some groceries are costing a lot more. Compared to this time last year -- eggs, fresh fruit and baked goods cost consumers more than 10 per cent more.

According to the Statistics Canada report, B.C. was the only province where inflation increased. The rate going from 7.9 percent in June to eight percent in July. The agency said travel accommodations, car insurance, and gas prices -- notoriously the highest in the country - are the biggest factors.

The province sets rent increases based on July's inflation number. This year, the cap will be lower.

Housing Minister Murray Rankin told CTV News in a statement that the particulars are still being ironed out.

"As many renters are barely hanging on and cannot afford a change in their rent at current rates of inflation, we will be capping the annual allowable rent increase for 2023 below the rate of inflation," he wrote

"We are finalizing the details of what the rent cap will be, and will have more to say in the coming weeks.'

Homeowners may also be on the hook for higher mortgage payments. While the head of the Bank of Canada thinks inflation may have peaked -- it's still much higher than its target of two percent.