The Globe and Mail reports in its Wednesday, Aug. 20, edition that Canada's inflation rate fell to 1.7 per cent in July, down from 1.9 per cent in June, driven by lower gasoline prices after the removal of the consumer carbon price in the spring. The Globe's Nojoud Al Mallees writes that grocery prices, however, rose 3.4 per cent annually, and shelter costs increased by 3 per cent, influenced by a 5.1-per-cent rise in rent. The Globe says this decline in inflation may lead the Bank of Canada to consider cutting interest rates. Financial markets reacted to the latest inflation data by raising the odds of an interest rate cut in September to 36 per cent from 26 per cent, according to Bloomberg. Economists also responded positively to the report, noting that the slowdown could lead to an interest-rate cut later this year. CIBC economist Andrew Grantham said, "An easing in inflationary pressures during July means that we have successfully cleared one obstacle on the path toward a potential September interest rate cut." The BOC has held its key interest rate steady at 2.75 per cent during its past three announcements. The central bank's next interest-rate announcement is scheduled for Sept. 17.