Canadian inflation up 2% in August, slowing as gasoline prices fall

Canada’s Consumer Price Index (CPI) rose by 2.0% in August compared with the same period last year. This is the slowest pace of increase since February 2021 and lags the 2.5% rise in July 2024. The slowdown in inflation is partly due to a fall in petrol prices, the result of a combination of lower prices and a base year effect. Excluding gasoline prices, the CPI rose 2.2% in August compared with 2.5% in July. Mortgage interest costs and rents continued to be the largest contributors to the rise in the CPI. On a month-on-month basis, the CPI fell by 0.2% in August, compared to a 0.4% increase in July.