Canada’s inflation rate continued to ease in August, according to new figures from Statistics Canada.
The Consumer Price Index stood at seven per cent last month, down from 7.6 per cent in July.
“This was the second consecutive slowdown in the year-over-year price growth and was largely driven by lower gasoline prices in August compared with July,” Statistics Canada said in its latest report on Tuesday.
Gasoline prices fell by 9.6 per cent compared to July, marking the largest monthly decline since April 2020.
StatCan said the decline mainly stemmed from higher global production by oil-producing countries and lower refining margins.
Transportation and shelter prices drove the deceleration in consumer prices in August, according to the report.
Year-over-year growth in shelter prices, which stood at 6.6 per cent, continued to slow. Other owned accommodation expenses, including commissions on the sale of real estate, also slowed.
In addition, the homeowners’ replacement cost index, which is related to the price of new homes, also slowed.
“These movements reflect a general cooling of the housing market,” said StatCan.
Higher interest rates and elevated bond yields also contributed to a 4.8 per cent increase in the year-over-year mortgage interest cost index – the fastest pace since January 2020.
Prices for groceries rose by 10.8 per cent in August, the fastest pace we have seen since 1981.
According to the report, prices for meat (+6.5%), dairy products (+7.0%), bakery products (+15.4%), fresh fruit (+13.2%), non-alcoholic beverages (+14.1%), condiments, spices, and vinegars (+17.2%), sugar and confectionery (+11.3%), and fish, seafood, and other marine products (+8.7%) all went up.
“The supply of food continued to be impacted by multiple factors, including extreme weather, higher input costs, Russia’s invasion of Ukraine, and supply chain disruptions,” said the report.
Prince Edward Island had the highest inflation rate in August at 8.3 per cent. Also above the national average were Manitoba (8.0%), Nova Scotia (7.8%), New Brunswick (7.4%), British Columbia (7.3%) and Quebec (7.1%).
Inflation rates were below the national average in Ontario (6.9%), Saskatchewan (6.8%), Newfoundland and Labrador (6.4%) and Alberta (6.0%).
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