Consumer inflation in Canada increases 2 percent yr/yr last month

(MENAFN) Consumer inflation in Canada increased by 2 percent year-over-year in August, marking the slowest annual pace since February 2021, according to data released by Statistics Canada on Tuesday. This represents a deceleration from the 2.5 percent annual rise reported in July and a significant slowdown compared to the 8.1 percent annual gain recorded in June 2022, which was the highest consumer price index (CPI) increase in 39 years.

The moderation in inflation rates for August was attributed to lower gasoline prices, which resulted from both reduced prices and a base-year effect. Despite this, Statistics Canada highlighted that mortgage interest costs and rent continued to be the primary contributors to the CPI's increase in August. This indicates that while overall inflation is easing, certain housing-related expenses are still driving up consumer costs.

On a monthly basis, the CPI saw a decrease of 0.2 percent in August compared to the previous month, falling short of market expectations that had anticipated no change. This monthly decline also represents a slowdown from the 0.4 percent month-on-month decrease observed in July. The reduction in the monthly CPI was primarily influenced by lower prices for air transportation, gasoline, clothing and footwear, as well as travel tours.

Overall, these figures reflect a complex inflationary environment in Canada, where while the annual rate is slowing, specific areas such as housing costs continue to exert upward pressure on consumer prices.

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