The country's inflation rate is moving in the right direction after a little hiccup, which means we might see interest rates drop next week. This morning, Statistics Canada announced that inflation was 2.7% in June, down from 2.9% in May. The main reason for the drop was slower growth in gas prices, which went up only 0.4% in June compared to a 5.6% jump in May. While most prices went up more slowly, grocery costs kept climbing for the second month straight, rising 2.1% in June after a 1.5% increase in May. For context, grocery prices have shot up a whopping 21.9% since June 2021 — something you've probably noticed every time you look solemnly at your grocery receipts. Other than that bleak statistic, this news couldn't have come at a better time — this is the last big release before the Bank of Canada's decision on interest rates next week. It's also a relief for analysts who think May's inflation spike was just a blip in the broader trend of prices calming down as the economy tries to find its footing. Traders are now giving a 90% chance of a rate cut next week, but we’ll have to wait and see with (overpriced) popcorn in hand.