Canada's Inflation Rate Slows to 1.1% in August


In August of 2013, Canadian annual inflation rate decelerated to 1.1 percent, from 1.3 percent in July. While cost of health and personal care declined for the fifth consecutive month, prices of food and clothing increased more in August than in July.

Transportation costs rose 1.3 percent in the 12 months to August, following a 2.7 percent advance in July. Gasoline prices increased 2.3 percent, after rising 6.1 percent in the previous month. Food prices increased 1.0 percent in August compared with the same month last year. This followed a 0.8 percent rise in July. Consumers paid 0.7 percent more for food purchased from stores in the 12 months to August, led by higher prices for meat (+1.6 percent). The cost of fresh fruit advanced 4.4 percent on a year-over-year basis in August, after rising 1.5 percent in July.

The clothing and footwear index rose 2.3 percent in the 12 months to August, after increasing 1.5 percent in July. Compared with the same month last year, fewer discounts on clothing items were observed in August.

The health and personal care index decreased 1.4 percent, following a 0.4 percent decline in July. Compared with August last year, consumers paid 4.2 percent less for prescribed medicines. In addition, the cost of non-prescribed medicines declined on a year-over-year basis in August, after rising in July.

Manitoba recorded the largest increase among the provinces for the third consecutive month. British Columbia was the only province to post a decline on a year-over-year basis.

On a month-over-month basis, inflation rate was flat, following a 0.1 percent increase in July.


Canada


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
9/20/2013 3:09:09 PM