The annual inflation rate was 1.9 per cent in August, Statistics Canada has announced.
In July, it was 1.7 per cent, while in June it was 1.9 per cent.
British Columbia’s annual rate was 1.8 per cent in August, up from 1.7 per cent in July.
Gas prices were down 12.7 per cent last month, as the inflation figures continue to benefit from the Liberal government’s decision to ditch its consumer carbon tax.
But StatCan said the decline in gas prices was less pronounced than in July, when prices at the pump fell 16.1 per cent compared with 12 months earlier.
StatCan also said that, despite lower oil costs, higher refining margins were pushing up the price of fuel.
The agency highlighted the following metrics in this morning’s report:
Food: Up 3.4 per cent
Shelter: Up 2.6 per cent
Health and personal care: Up 2.8 per cent
All items excluding food: Up 1.5 per cent
All items excluding food and energy: Up 2.4 per cent
Cell services: Down 1.2 per cent
Meat: Up 7.2 per cent
Fresh and frozen beef: Up 12.7 per cent
Fresh fruit: Down 1.1 per cent
Clothing and footwear: Up 1.7 per cent
Travel services: Down 3.8 per cent
Air transport: Down 7.6 per cent
StatCan also said private tour prices declined at 9.3 per cent, citing “lower demand for destinations in the United States.”
In Nova Scotia and Newfoundland and Labrador, however, prices for hotels increased by 16.1 per cent and 30.9 per cent, respectively.
That was because “more tourists visited both provinces,” with Canada’s easternmost province seeing particularly high demand due to the Canada Summer Games.
The Bank of Canada, which closely studies inflation data before deciding on its key lending rate, is due to make its next announcement tomorrow.
It’s widely predicted to cut the rate from 2.75 per cent to 2.5 per cent in an effort to stimulate Canada’s struggling economy.
