Inflation in Canada rose at an annualized pace of 3% in August of this year, unchanged from July.
Data from Statistics Canada shows that gasoline prices across the country rose at a slower pace in August compared with July, putting downward pressure on inflation.
Excluding gasoline, inflation in Canada rose an annualized 2.4% in August, up from 2.2% in July. The slowdown in gas prices was offset by higher prices for travel tours and rent.
On a seasonally adjusted monthly basis, the Consumer Price Index (CPI) in Canada rose 0.2%.
The latest inflation reading was inline with the consensus expectation of economists, who forecast that the annual rate of inflation would come in at 3% for August.
The cost of travel tours rose 26.1% year-over-year in August as operators take advantage of the busy summer travel season.
Prices for rent increased 2.8% year-over-year in August compared with a 2.5% rise in July.
Inflation was partly offset by lower costs for clothing, which declined 1.1% in August from July of this year.
And prices for groceries purchased from stores slowed in August, rising 2.8% year-over-year after increasing by 3.1% in July.
Among the provinces, inflation rose at the fastest clip in Atlantic Canada.
The August inflation data comes after the Bank of Canada recently left its trendsetting overnight interest rate unchanged at 2.25%.
The central bank has held interest rates steady for seven consecutive policy meetings as it assesses the impacts of volatile energy prices and U.S. tariffs on the Canadian economy.
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