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

COLUMN: Don’t be surprised to see hordes of teenagers gathering during this pandemic

The complexity and nuance of public health warnings look like mixed messaging to minds young and old

RCMP escort beaver across busy Chilliwack road

Motorists had to exercise patience as the slow-moving creature crossed several lanes of traffic

Rail traffic starts moving after 60-car derailment near Hope

The 60 cars carrying potash crashed along a rail bridge, clean up is ongoing

Fraser Valley foursome to hike 70km over mountains in memory of friend

Friends from Abbotsford and Langley to hike from Hope to Tulameen for Brook Morrison

Chilliwack RCMP officers find rewarding work in Mental Health Liaison Unit

Two officers are trying to bridge the gap between police and those with mental health issues

Record-breaking 165 new COVID-19 cases diagnosed in B.C. in 24-hour period

Fifty-seven people are in hospital battling the novel coronavirus

One injured in South Surrey shooting

Shots reported in area of 194 Street and 34 Avenue

Report raises questions about COVID outbreak that killed 25 seniors at Langley Lodge

CEO defends leaked document that’s igniting queries about BC’s most deadly COVID outbreak

B.C.’s COVID-19 economic recovery plan: Top 5 things you need to know

Jobs training, tax incentives for employers to hire staff and more

March to protect old growth, stop industrial logging coming to B.C. Legislature

Organizers say they want to give frontline communities a bigger say in nearby logging

B.C. releases details of $1.5B economic recovery plan, $660M in business tax incentives

Economic plan includes support for employers, as well as training for workers

‘Not criminally responsible’ hearing slated for man convicted of Abbotsford school stabbing

Gabriel Klein was found guilty in March of killing Letisha Reimer, 13, in 2016

Most Read