Canada's annual inflation rate fell to 2.8 percent in June, down from 2.9 percent in May, according to data from Statistics Canada. The slowdown was largely driven by lower prices at the gas pump, which decreased on a month-over-month basis and rose at a slower pace compared to a year ago. Consumers paid less for gasoline in June than in May, contributing to the easing of overall price pressures. The inflation reading aligns with economists' expectations and suggests that the central bank's interest rate hikes may be gradually cooling the economy. However, core inflation measures, which exclude volatile items like food and energy, remained elevated, indicating that underlying price pressures persist. The Bank of Canada will consider this data in its upcoming decisions on monetary policy. While cheaper gas provided relief to households, other costs such as rent and groceries continued to rise, keeping the cost of living high for many Canadians. The next inflation report will be closely watched to see if the trend continues.