Economists say an unexpected dip in the national inflation rate bodes well for the prospects of the Bank of Canada making a second straight cut to its benchmark interest rate when it meets later this month.

Canada’s annual inflation rate fell to 2.7 per cent in June, down from the 2.9 per cent year-over-year growth in May, Statistics Canada said Tuesday.

It largely attributed the deceleration to slower year-over-year growth in gasoline prices.