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- Canada’s annual inflation unchanged in August at 0.1 percent
Canada’s annual inflation unchanged in August at 0.1 percent
Statistics
Canada announced on Wednesday the country’s consumer price index (CPI) fell 0.1
percent m-o-m in August, the same pace as in the previous month.
On the y-o-y basis,
Canada’s inflation rate increased 0.1 percent last month, also the same pace as
in July.
Economists had
predicted inflation would increase 0.1 percent m-o-m and 0.4 percent y-o-y in August.
According to
the report, prices rose in five of the eight major components on a
year-over-year basis in August, led by gains in prices for food (+1.8 percent
y-o-y), shelter and health (+1.5 percent y-o-y) and personal care (+1.4 percent
y-o-y), Meanwhile, cost of transport dropped (-1.3 percent y-o-y), mostly due
to lower air transportation prices (-16.0 percent y-o-y), which fell as demand
for air travel has fallen during the pandemic and airlines continue to offer
travel discounts to encourage a return to travel. In addition, prices declines
in clothing and footwear (-1.3 percent y-o-y) and recreation, education and
reading (-3.1 percent y-o-y).
Meanwhile, the closely watched the Bank of Canada's
core index rose 0.8 percent y-o-y in August after a 0.7 percent gain in July.
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