Canadian inflation decelerates to 1.9 per cent in August as gas prices weaken
Posted September 18, 2019 6:46 am.
Last Updated September 18, 2019 7:52 am.
OTTAWA – Canada’s annual inflation rate slowed slightly to 1.9 per cent in August under the weight of declining gasoline prices.
Inflation was firm enough to stick close to the Bank of Canada’s ideal two per cent target and August was the sixth straight month that price growth was 1.9 per cent or higher.
Statistics Canada says in a new report that excluding pump prices inflation would have increased by 2.4 per cent.
Price growth was also held back last month, compared with a year earlier, by lower costs for traveler accommodation, internet access services and furniture.
Consumer Price Index, August 2019: #CPI rose 1.9% on a year-over-year basis in August, down from a 2.0% increase in July, primarily due to lower gasoline prices. https://t.co/goWSFhVnM8 pic.twitter.com/EYvkWsKZOF
— Statistics Canada (@StatCan_eng) September 18, 2019
The upward pressure on consumer prices, year-over-year, was led by higher costs for airline tickets, mortgage interest and auto insurance.
The average of Canada’s three gauges for core inflation, which are considered better measures of underlying price pressures by excluding volatile items like gas, hit the central bank’s target at two per cent.