2018-07 Inflation eases but core measures signal higher interest rates

The rate of inflation in July was 2.8%, a decline from 3% in June. 
Inflation is so high because of an increase in gasoline costs, which rose 20%. Excluding gasoline, inflation remained constant at 2.2%.
Recall that the goal of the Bank of Canada is to maintain inflation close to 2%. But their approach is to look at core inflation: inflation without the most volatile elements, in particular fuel.  Last month shows that this is the right approach. Rising prices of fuels do not indicate inflationary pressures in the economy. Prices of gasoline change all the time and there is no point of having monetary policy dictated by gasoline prices.