Canada inflation rate cools in July as gas prices fall

OTTAWA (Reuters) - Canada's annual inflation rate cooled as expected in July, pulled down by cheaper gasoline prices, even as the cost of food and shelter climbed, data from Statistics Canada showed on Friday. July's decrease to 1.3 percent from June's 1.5 percent rate matched economists' forecasts. Annual core inflation, which strips out some volatile items and is watched by the central bank, was more robust at 2.1 percent. Gasoline prices, which have seen some swings over the past year, slumped 14.0 percent year-over-year. Excluding energy, the annual inflation rate was 1.9 percent. Food prices were up 1.6 percent compared to the year before, led by an increase in the cost of food purchased in stores, particularly meat. The cost of shelter similarly rose 1.6 percent. The in-line inflation rate was unlikely to change analysts' expectations for monetary policy as the Bank of Canada has said that inflation is being influenced by temporary factors. (Reporting by Leah Schnurr; Editing by Bernadette Baum)