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Canada's Consumer Price Index Rises 1.9 Percent Year-Over-Year in August

Strategic Insights

— 2 min read

Canada's consumer price index (CPI) rose 1.9 per cent year-over-year in August, according to the latest data from Statistics Canada. This increase is attributed to higher prices for meat and clothing. The CPI had increased 1.7 per cent in July. The Bank of Canada notes that the CPI is widely used as an indicator of the change in the general level of consumer prices or the rate of inflation.

Key Takeaways:

  • The consumer price index (CPI) rose 1.9 per cent year-over-year in August, with higher prices for meat and clothing being the main contributors.
  • Meat prices rose 7.2 per cent year-over-year in August, following a 4.7 per cent increase in July, with prices for fresh or frozen beef rising 12.7 per cent and processed meat jumping 5.3 per cent.
  • Prices for fresh fruit fell 1.1 per cent last month after increasing 3.9 per cent in July, due to price declines for grapes, other fresh fruit, and berries.
  • Gas prices rose 1.4 per cent in August due to higher refining margins, but have declined 12.7 per cent year-over-year.
  • Prices for cellular services fell 1.2 per cent year-over-year in August, after a 6.6 per cent decline in July, due in part to a 1.5 per cent price drop for multipurpose digital devices.
  • Clothing and footwear prices rose 1.7 per cent year-over-year in August, compared with a 0.8 per cent jump in July.
  • Travel services continued to fall in August, with prices for travel services declining 3.8 per cent year-over-year, partially offset by higher prices for traveller accommodations.
  • Statistic Canada will release CPI data for September on October 21.

Statistics:

  • The Canadian consumer price index (CPI) rose 1.9 per cent year-over-year in August.
  • Meat prices rose 7.2 per cent year-over-year in August.
  • Prices for fresh or frozen beef rose 12.7 per cent in August.
  • Processed meat prices jumped 5.3 per cent in August.
  • Gas prices rose 1.4 per cent in August.
  • Prices for cellular services fell 1.2 per cent year-over-year in August.
  • Clothing and footwear prices rose 1.7 per cent year-over-year in August.
  • Travel services prices declined 3.8 per cent year-over-year in August.
  • The Bank of Canada's overnight rate has remained at 2.75 per cent since July 30.

Sources:

  • Statistics Canada
  • Bank of Canada
  • Ratehub.ca
  • InsideHalton.com

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