Bank of Canada Tiff Macklem and his team decide on interest rates on Sept. 17. Photo by Adrian Wyld/The Canadian Press

Canada’s inflation rate slowed to 1.7 per cent in July, but economists remain in a “wait and see” mode when it comes to the future of interest rates.

Statistics Canada on Tuesday said Canada’s consumer price index (CPI) fell 0.2 percentage points from June, largely on the back of a drop in gasoline prices, which declined 0.7 per cent on a monthly basis.

Here’s what economists had to say about the latest inflation numbers.

‘Cleared one obstacle’ toward rate cut: CIBC

Andrew Grantham, a senior economist at CIBC Capital Markets, said July’s inflation numbers show that the Canadian economy is one step closer to another interest cut.

“We have successfully cleared one

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