Gas prices locally on Monday morning were among the lowest in the province according to GasBuddy.com. Most stations in the city were at $1.13.9 for regular self serve while the Super Save station on Green Mountain Road was at $1.12.9. (Mark Brett - Western News)

Canadian inflation decelerates to 1.9% as gas prices weaken

August was the sixth straight month that price growth was 1.9 per cent or higher

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.

The price picture, on its own, did not put pressure on the inflation-targeting Bank of Canada to adjust interest rates.

Excluding pump prices, the consumer price index was up 2.4 per cent from a year ago, Statistics Canada said Wednesday in a new report. Gas prices fell 10.2 per cent last month, which followed a decrease of 6.9 per cent in July.

Price growth was also held back last month, compared with a year earlier, by lower costs for traveller accommodation, internet access services and furniture.

On a month-to-month basis, the price of pork declined 2.7 per cent at a time when Canadian pork products are facing tougher restrictions in the key Chinese market. Consumers also paid 6.5 per cent less for fresh vegetables — the largest decline in five years — as temporary price increases due to poor weather in growing regions eased off.

READ MORE: Inflation hits Bank of Canada 2% target for second straight month

The upward pressure on consumer prices, year-over-year, was led by higher costs for airline tickets, mortgage interest and auto insurance.

The cost of air travel climbed 10.3 per cent in August. The increase was largely related to the impact of the grounding of Boeing 737 Max jets during the busy summer travel season, the report said.

Natural gas prices rose to 5.8 per cent last month, up from a 3.2 per cent increase in July.

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. The reading was 2.03 per cent in July.

Canada’s domestic economy has been resilient even as trade wars inject significant uncertainty into the slowing global economy.

Many forecasters have been expecting the Bank of Canada to cut its overnight lending rate before the end of the year and perhaps as early as its Oct. 30 policy announcement.

Economists on average had expected an inflation reading of 2.0 per cent for August, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Sept. 18, 2019.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wetaskiwin police say thief broke into locker, stole debit card

Wetaskiwin RCMP investigate theft, fraud, seek information and ID suspect

Two men charged after stolen vehicles, property seized near Wetaskiwin

Wetaskiwin/Camrose RCMP investigate possession of stolen property, more

Rosebrier 4-H Beef Club January report

Rosebrier public speaking event coming up this weekend

UPDATE Human remains found in Manny’s Motel ruins

UPDATE RCMP Major Crimes Unit Investigate Fatal Fire in Wetaskiwin

Wetaskiwin Legion ‘Branch Briefings’

Branch #86 is planning its 90th anniversary

VIDEO: Canada’s first presumptive case of coronavirus officially confirmed

Both patient and wife arrived on a China Southern Airlines flight after having been to Wuhan

Alberta premier wants feds to approve Teck mine for benefit of First Nations

Kenney: ‘Surely [reconciliation] means saying yes to economic development for First Nations people’

VAUGHAN: Childhood heroes like Kobe are supposed to be immortal

Kobe Bryant tragically passed away in a helicopter crash that claimed the lives of nine people

VIDEO: Music stars pay tribute to Kobe Bryant at Grammys award show

Music artists including Billy Ray Cyrus, Rick Ross and Kirk Franklin paid tribute to Bryant

VIDEO: Alberta man hopes billboard will find him a kidney donor

Jim Lomond has a rare disorder that causes inflammation and damages his kidney tissues

Pregnant B.C. woman stuck in Wuhan, the epicentre of coronavirus outbreak

Woman is due to give birth in Wuhan, China unless she can get out

Canada’s basketball community mourns Kobe Bryant after helicopter crash

Bryant was an 18-time NBA all-star who won five championships

‘Devastated’: Fans, celebrities remember Kobe Bryant after his death

Bryant played all of his 20-year career with the NBA with the Los Angeles Lakers

Most Read