Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. Statistics Canada will reveal today how the country’s official measure of inflation fared in August with expectations for another month of near-zero readings. THE CANADIAN PRESS/Sean Kilpatrick

Consumer price index in August hits 0.1 per cent, Statistics Canada says

The average economist estimate had been for a year-over-year increase of 0.4 per cent for August

Statistics Canada says the consumer price index in August was up 0.1 per cent compared with a year ago.

The annual inflation rate was unchanged from the year-over-year increase of 0.1 per cent in July.

The average economist estimate had been for a year-over-year increase of 0.4 per cent for August, according to financial markets data firm Refinitiv.

Gasoline prices were down 11.1 per cent compared with August 2019, following a 14.9 per cent decline recorded in July.

Excluding gasoline from the inflation calculations, the consumer price index rose by 0.6 per cent in August.

Prices were up in other categories such as personal care services like haircuts, which had a year-over-year increase of 7.2 per cent.

The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures and closely tracked by the Bank of Canada, was 1.7 per cent.

The Bank of Canada intends to keep its key policy interest rate at 0.25 per cent, which is as low as it will go, until inflation is back at the central bank’s two per cent target.

The hope is that by keeping its rate low, the central bank can drive down rates on mortgages and loans to make it easier for people to borrow and spend to aid the economy as it recuperates from the COVID-19 crisis.

Experts suggest the Bank of Canada’s key rate could stay where it is until late 2022 or even into 2023, although the pace of a recovery is largely dependent on the path of the pandemic, which has affected large swaths of the Canadian economy.

The monthly inflation report noted that air travel costs fell 16 per cent compared with August 2019, following a decline of 8.6 per cent in July as demand falls during the pandemic and airlines have offered discounts in response.

Regionally, prices rose the fastest in Prince Edward Island, where Statistics Canada says consumers paid more for cigarettes – which registered an annualized increase of 7.8 per cent – after the province instated a special tax in mid-July.

READ MORE: Inflation rate falls to 0.1 per cent as price growth slows, StatCan reports

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

inflation

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

Just Posted

Wetaskiwin RCMP make arrests for Hit and Run to residence

Damage estimates are expected to be in excess of $20,000.

UPDATED: Red Deer has nine active COVID-19 cases

Number of cases increased by 107 Friday

Water Works Studios in Wetaskiwin officially open

Water Works Studios had their grand opening Sept.15, 2020.

Man sentenced to 7 years for gas-and-dash death of Alberta gas station owner

Ki Yun Jo was killed after Mitchell Sydlowski sped off in a stolen cube van without paying for $198 of fuel

QUIZ: A celebration of apples

September is the start of the apple harvest

First annual Best of Wetaskiwin Readers’ Choice Awards

Enter to win a $200 gift card for Canadian Tire.

Six injured, man in custody following BB gun incident in Alberta, RCMP say

Airdrie’s downtown core was told to shelter-in-place, while others nearby were asked to stay inside

Nearly 20 per cent of COVID-19 infections among health-care workers by late July

WHO acknowledged the possibility that COVID-19 might be spread in the air under certain conditions

Young Canadians have curtailed vaping during pandemic, survey finds

The survey funded by Heart & Stroke also found the decrease in vaping frequency is most notable in British Columbia and Ontario

“My world exploded,” says Bentley-area farmer who’s swather was struck by a motorist

Dennis Duncan was a mile from home when his swather was struck by another travelling at high speeds

UPDATE: Last kidnapping suspect arrested

Amber Knickle has been arrested and remains in police custody

Most Read