Canada Inflation Rate Stable at 2.1% in August


Canadian consumer prices rose 2.1 percent in the 12 months to August, matching the increase in July. The biggest contributor to the rise was cost of shelter; prices of household operations, furnishings and equipment, food, and transportation also increased.

Shelter costs rose 2.8 percent in August compared with the same month a year earlier. This increase followed a 3.0 percent gain in July. Natural gas prices increased 17.9 percent on a year-over-year basis in August, after rising 20.4 percent the previous month. Consumers also paid more for homeowners' home and mortgage insurance.

The household operations, furnishings and equipment index rose 3.0 percent on a year-over-year basis in August, led by a 7.6 percent increase in the cost of telephone services. In addition, the cost of Internet access services rose in the 12 months to August.

Food prices were up 2.2 percent in the 12 months to August. The cost of food purchased from stores increased 2.3 percent on a year-over-year basis, after rising 3.2 percent the previous month. This deceleration was led by prices for fresh fruit and fresh vegetables, both of which recorded smaller increases in August than in July. At the same time, consumers paid 9.3 percent more for meat in the 12 months to August. Prices for food purchased from restaurants were up 2.1 percent compared with the same month a year earlier.

Transportation costs rose 1.2 percent on a year-over-year basis in August, following a 1.3 percent increase in July. The purchase of passenger vehicles index advanced 2.9 percent in the 12 months to August, after rising 1.3 percent the previous month. Conversely, gasoline prices decreased 0.1 percent in August compared with the same month a year earlier. This decline followed a 2.1 percent gain in July.

The index for alcoholic beverages and tobacco products advanced 5.7 percent in the 12 months to August, following a 4.7 percent gain in July. This larger increase was led by higher prices for beer purchased from stores, which rose 2.8 percent year over year in August, after increasing 0.3 percent the previous month. Consumers also paid more for cigarettes on a year-over-year basis in August.

On a monthly basis, consumer prices were flat in August, following a 0.2 percent drop in July.

The annual core inflation rate accelerated to 2.1 percent from 1.7 percent in the previous month. 

Canada Inflation Rate Stable at 2.1% in August


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
9/19/2014 4:09:01 PM