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

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

Princeton Town Hall and the visitor centre are closed for two weeks while staff continue to work - everybody wearing a mask. 
(Andrea DeMeer - Spotlight)
Princeton town hall and the visitors centre are closed for two weeks, while staff continue to work - everybody wearing a mask. Photo Andrea DeMeer
Princeton mayor urges residents to follow COVID rules

Town hall and visitors centre closed for two weeks during pandemic’s second wave

Dentice di Frasso, a member of Italian nobility, once owned land in Summerland. (Contributed)
Italian nobility family once lived in Summerland

Dentice di Frasso and his family owned land in the Prairie Valley area

COVID-19. (Image courtesy CDC)
47 new COVID-19 cases in Interior Health region

1,538 total cases, 399 are active, ten in hospital

Grand Forks’ Roly Russell met with The Gazette after he was named Parliamentary Secretary for Rural Development Thursday, Nov. 26. Photo: Laurie Tritschler
NDP’s Roly Russell named secretary for rural development

Russell formerly represented rural Grand Forks on the Regional District of Kootenay Boundary’s elected board

Mary Cox and Jack Plant dance in their pyjamas and slippers at the morning pyjama dance during the Rhythm Reelers’ 25 Annual Rally in the Valley Square Dance Festival in Chilliwack on June 4, 2011. Sunday, Nov. 29, 2020 is Square Dancing Day. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of Nov. 29 to Dec. 5

Square Dancing Day, Disability Day and International Ninja Day are all coming up this week

Black Press Media and BraveFace have come together to support children facing life-threatening conditions. Net proceeds from these washable, reusable, three-layer masks go to Make-A-Wish Foundation BC & Yukon.
Put on a BraveFace: Help make children’s wishes come true

Black Press Media, BraveFace host mask fundraiser for Make-A-Wish Foundation

Kevin Bieksa during his days playing with the Vancouver Canucks. (Photo: commons.wikimedia.org)
Bieksa to guest on free Canucks Alumni ‘Hot Stove’ on Zoom app

Former NHL player has become a game analyst on Sportsnet

A West Cabs driver is being investigated for an incident which allegedly took place this week. (West Cabs)
West Kelowna cab driver under investigation after altercation over his lack of mask

Passenger alleges cab driver became confrontational when asked about wearing mask

Supt. Brian Hunter will be presenting first quarter RCMP stats to Penticton city council, tomorrow (April 21). (Phil McLachlan - Western News - File)
South Okanagan RCMP superintendent wants to set up dedicated prolific offender task force

Supt. Brian Hunter plans to use the additional officers city council approved for the force

(Pixabay)
‘We need to be empathetic’; Kelowna support worker speaks out after disabled individual denied haircut

Individual with severe autism denied service at a Kelowna hair salon for not wearing mask

Parents are urged to be on alert after a potential child abduction attempt took place near Armstrong Elementary School Friday, Nov. 27, 2020. (amsas/neden photo)
Possible child abduction attempt at North Okanagan elementary school prompts warning

A letter from the school’s principal urges parents to be on high alert

British Columbia provincial health officer Dr. Bonnie Henry wears a face mask as she views the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
COLUMN: Anti-maskers’ message misses the mark

Following COVID-19 restrictions now could determine just how happy our holidays are

The Interior Wildfire Rehabilitation Society is looking for 10-15 acres to house a rehab centre for injured and orphaned wildlife like deer and moose calves. (Black Press file photo)
Okanagan group look for property to house wildlife rehab centre

The Interior Wildlife Rehabilitation Society is looking for 10 acres for injured/orphaned animals

Most Read