The Globe and Mail reports in its Thursday edition that annual inflation rate held steady in July at 2 per cent because of lower costs for services, including telecommunications, that were offset by higher prices for durable goods, Statistics Canada said on Wednesday. A Reuters dispatch to The Globe says that analysts had forecast an inflation rate of 1.7 per cent; Canada's inflation rate in June was 2 per cent. The dollar strengthened to $1.3265, or 75.39 U.S. cents. Consumers paid less for phone services in July in the wake of an industry-wide shift in how prices are set for cellular plans. At the same time, the price of smart phones and tablets rose 42.5 per cent month-over-month after a reduction in subsidies for wireless devices. Cellphone bills are expected to be an election issue for all three of the country's major political parties in the coming Oct. 21 federal election, in which Liberal Prime Minister Justin Trudeau is facing tight competition from Conservative Party leader Andrew Scheer. The Bank of Canada is set to release its next interest-rate decision on Sept. 4. The Globe notes that the bank has held interest rates steady since October, 2018, and is not expected to move for the rest of the year.