By Ovunc Kutlu
ISTANBUL (AA) - Canada's annual consumer inflation was 4% in August, according to the country’s statistical authority.
It was higher than expectations of a 3.8% increase, while it accelerated from the 3.3% annual gain recorded in July.
The rate, however, reflects a significant slowdown since the 8.1% gain last June, which was the highest in 39 years.
"The headline acceleration was largely the result of higher year-over-year prices for gasoline," Statistics Canada said Tuesday in a statement, noting that gasoline prices rose 0.8% last month, compared to a 12.9% decline in July.
Excluding gasoline, the consumer price index (CPI) increased 4.1%, following a 4.1% gain in July.
On a monthly basis, the CPI was up 0.4% in August, also higher than estimates of a 0.2% increase, but slowed from a 0.6% gain in July.
The monthly slowdown was mainly driven by travel tours, which fell 6.4%, and air transportation which declined 6.9%, according to Statistics Canada.
"On a monthly basis, gasoline prices rose 4.6%, also contributing to the year-over-year increase in August 2023," it said.
The Bank of Canada hiked interest rates by 25 basis points July 12 as the central bank continues its policy of quantitative tightening to fight inflation.
The target for the overnight rate has been increased to 5%, with the bank rate now at 5.25% and the deposit rate climbing to 5%.