Statistics Canada is reporting that the country’s annual inflation rate fell to 2.7 per cent in June.

The agency is attributing the drop to slower year-over-year growth in gasoline prices.

It says the cost of gasoline increased 0.4 per cent in June following a 5.6 per cent jump in May. Aside from gasoline, the consumer price index rose 2.8 per cent in June.

Another contributing factor to the overall slowdown is lower prices for durable goods, which fell 1.8 per cent year-over-year in June following a 0.8 per cent decline in May.

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Meanwhile, grocery prices rose 2.1 per cent year-over-year in June, up from May when they increased 1.5 per cent from the same month a year earlier.

In May, the annual inflation rate was 2.9 per cent.

Today’s inflation rate announcement is the last before the Bank of Canada’s next interest rate decision scheduled for July 24.

– With files from The Canadian Press