The Canadian economy continued its cooling trend in July, dropping to a 40 month low of 2.5 per cent.
Price pressures that were driving high inflation are continuing to fade with lower costs for travel tours, passenger vehicles and electricity.
The inflation rate in Newfoundland and Labrador fell to 2.1 per cent from 2.3 per cent in June, while the inflation rate in St. John’s was down to 2.3 per cent from 2.8 in the previous month.
It’s widely expected that the Bank of Canada will continue to cut interest rates, with its next announcement set for September 4.
The central bank lowered its key interest rate to 4.5 per cent in July.