Gas price rebound drove inflation up to 3% in July: StatCan

Statistics Canada says the annual rate of inflation accelerated to three per cent in July as motorists were once again paying more to fill up their tanks.

Inflation had cooled to 2.8 per cent in June as the United States and Iran worked toward a peace agreement but fresh conflict in the Gulf region in July pushed global gas prices higher again.

StatCan says consumers were also paying more for airfares and travel tours last month as the energy shock made jet fuel more expensive and the FIFA World Cup drove up demand to U.S. destinations.

Canadians found some relief in the grocery aisles as annual price hikes on food bought from the store cooled sharply to 3.1 per cent in July from 3.9 per cent previously.