Inflation fell to 7% in August in Canada

Spread the love

Reduction of inflation at 7% in August in Canada

The prices of several goods and services, including the grocery basket, have increased in recent months.

Statistics Canada reported on Wednesday that the consumer price index (CPI) came in at 7% in August from a year earlier. This is a decline of 0.6 percentage points from July's inflation rate of 7.6%.

This is the second decline in annual inflation in Canada in two months since the peak of 8.1% reached last June.

As was the case in July, this further drop in inflation is once again largely attributable to the decline in the price of gasoline in the country last month.

Beginning of the widget. Skip the widget?End of widget. Back to top of widget?

Which means the price of goods and services in general hasn't come down much despite five consecutive Bank of Canada rate hikes this year in an attempt to curb the overheating economy. /p>

This is nevertheless good news as the CPI excluding gasoline had not shown a decline since over a year.

“This is the first month the CPI excluding gasoline has shown a year-over-year slowdown since June 2021.”

—Statistics Canada< /blockquote>

Excluding gasoline, prices rose 6.3% year over year in August, after posting a 6% increase .6% in July, specifies the federal agency.

Still excluding gasoline, it is mainly transportation (+10.3%) and housing (+6.6%) that are responsible for the drop measured last August. The rise in the price of non-durable goods also slowed (+10.8%), as did the price of durable goods, particularly automobiles and household appliances (+6%).

However, the steady rise in grocery prices (+10.8%) mitigated the gains made last month on inflation.

The prices for food purchased from stores (+10.8%) posted the largest increase since August 1981 (+11.9%), Statistics Canada points out in its monthly report.

As the price of food, goods and services continues to rise, the average hourly wage also increased by 5.4% compared to August 2021, less than the average price increase that was 7% last month, again on an annual basis.

Although the purchasing power of Canadians has declined, the gap has been less pronounced July, says Statistics Canada.

Previous Article
Next Article