Canada's annual consumer inflation rises 2% in August, slowest pace since February 2021

By Ovunc Kutlu

ISTANBUL (AA) - Consumer inflation in Canada annually rose 2% in August, increasing at the slowest pace since February 2021, the country’s statistical authority said Tuesday.

The figure marked a deceleration from a 2.5% annual increase in July.

It also reflects a significant slowdown since the 8.1% annual gain recorded in June 2022 – the highest for the consumer price index (CPI) in 39 years.

"The deceleration in headline inflation in August was due, in part, to lower prices for gasoline, due to a combination of lower prices and a base-year effect," Statistics Canada said in a statement.

The agency, however, noted that mortgage interest cost and rent remained the largest contributors to the increase in the CPI in August.

On a monthly basis, the CPI decreased 0.2% in August, compared to the previous month, coming lower than market estimates of no change.

The figure also showed a deceleration from a 0.4% month-on-month decrease in July.

"The monthly decline was led by lower prices for air transportation, gasoline, clothing and footwear and travel tours," said the agency.