WASHINGTON, July 22: Canada’s annual inflation rate eased to 3.1 per cent in June from May but high food and gas prices kept it at a relatively fast pace, the government said on Friday.

The year-on-year rate dropped from 3.7 per cent in May, Statistics Canada said in a statement.

The difference “was largely the result of lower prices for the purchase of passenger vehicles and traveller accommodation,” it said.

Food prices continued to rise in the period: prices were up 4.8 per cent in the 12 months to June, compared to just 4.2 per cent in the year to May.

Excluding the often volatile food and energy components, the core consumer price index rose 1.4 per cent in June, Statistics Canada said. —AFP