The Globe and Mail reports in its Tuesday, July 21, edition that lower gas prices significantly reduced the headline inflation rate in June, but economists noted even more encouraging signs in Statistics Canada's report. A Canadian Press dispatch to The Globe reports that inflation slowed to 2.8 per cent in June, Statscan said, down from the recent high of 3.2 per cent in May and a tick lower than most economists were expecting. It pointed to a 10-per-cent drop in the cost of gasoline month-over-month to explain the decline. Some consumers might view easing in the headline inflation rate as old news because renewed hostilities in the Middle East have pushed prices at the pump higher again in recent weeks. "Energy prices (were) still significantly higher than a year ago in June and have moved higher since with tensions re-escalating in the Middle East," said RBC economist Nathan Janzen. Taking gas prices out of the equation, Statscan said inflation was unchanged from May at 2.2 per cent. Statscan data show the average of the central bank's preferred metrics of core inflation eased alongside the headline rate in June and fell below the 2-per-cent target for the first time since December, 2020.