Canada’s annual inflation rate remained steady at three per cent in August as gasoline prices rose at a slower pace but remained elevated due to the ongoing war in Iran. Gas prices rose by 22.8 per cent year over year in August following a 25.7 per cent increase in July, according to Statistics Canada data released on Monday. Statcan said Canada’s inflation rate would have been 2.4 per cent in August and 2.2 per cent in July if this category was excluded. The slowdown in gasoline prices was offset by higher prices for travel tours and rent, which edged up by 26.1 per cent and 2.8 per cent annually, respectively. Grocery price growth fell below the overall inflation rate for the first time since July 2024, with prices for store-bought food rising by 2.8 per cent year over year in August following a 3.1 per cent increase in July. Dairy products led the slowdown in grocery store inflation. Prices rose by 0.7 per cent annually in August after a 3.1 per cent increase in July due to slower price increases for cheese and yogurt. Smaller price increases for pork, condiments, spices and vinegars, and fresh fruit also contributed to the year-over-year slowdown in grocery inflation last month. Statistics Canada noted, however, that grocery store prices have increased by around 29 per cent since August 2021 despite the recent slowdown. Core inflation measures remained stable in August. CPI-median remained flat at two per cent in August and July, while CPI-trim held steady at 1.9 per cent during the same time period. More to come … • Email: ptran@postmedia.com
Canada’s inflation rate remains steady at 3% as food price growth slows
