Canada’s inflation slows to 2%

Canada’s Consumer Price Index (CPI) inflation rose 2.0 per cent on a year-over-year basis in August, its lowest level since February 2021, and down from a 2.5 per cent gain in July 2024.

According to Statistics Canada, deceleration in headline inflation in August was due, in part, to lower prices for gasoline, buoyed by a combination of lower prices and a base-year effect. Excluding gasoline, the CPI rose 2.2 per cent in August, down from 2.5 per cent in July.

Mortgage interest cost and rent remained the largest contributors to the rise in the CPI in August.

On a monthly basis, the CPI deflated by 0.2 per cent in August, after a 0.4 per cent increase in July. The monthly deflation was led by lower prices for air transportation, gasoline, clothing and footwear and travel tours. On a seasonally adjusted monthly basis, the CPI rose 0.1 per cent in August.

Attribution: Statistics Canada