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

Luke Marston works on the seawolf mask for Canucks goalie Braden Holtby. (Mike Wavrecan photo)
Stz’uminus artist Luke Marston designs new mask for Canucks goalie

The mask features artwork inspired by the Coast Salish legend of the sea wolf

Scott Saywell, Nanaimo Ladysmith Public Schools’ superintendent and CEO, has seen his contract renewed for four years, the district announced Wednesday. (SD68 YouTube screenshot)
Ladysmith school district renews superintendent’s contract for four years

‘Singing superintendent’ Scott Saywell under contract through 2024-25 school year

Emergency services were on scene at 1st Avenue and Warren Street after a skateboarder was struck by a vehicle. (Submitted photo)
Skateboarder ‘bumped’ by vehicle on 1st Avenue

Emergency services personnel say the skateboarder is uninjured

Parents Robin Ringer and Wyatt Gilmore with the No. 1 baby of 2021 in the Cowichan Valley. They have yet to decide on a name for her. (Photo by Don Bodger)
Chemainus couple excited about having the New Year’s baby for the Cowichan Valley

Recent arrivals from Fort Nelson celebrate their girl coming into the world on Jan. 7

Regional District of Nanaimo’s transit select committee is expected to vote on a recommendation that could see busing between Nanaimo and the Cowichan Valley. (News Bulletin file)
Regional District of Nanaimo staff recommending bus route to Cowichan Valley

More than 1,900 survey respondents expressed support for inter-regional transit, notes RDN report

Justin Kripps of Summerland and his team have competed in Olympic action and World Cup competitions in bobsleigh. (Jason Ransom-Canadian Olympic Comittee).
QUIZ: Are you ready for some winter sports?

It’s cold outside, but there are plenty of recreation opportunities in the winter months

(Phil McLachlan - Capital News)
‘Targeted’ shooting in Coquitlam leaves woman in hospital

The woman suffered non-life threatening injuries in what police believe to be a targeted shooting Saturday morning

JaHyung Lee, “Canada’s oldest senior” at 110 years old, received his first dose of the COVID-19 vaccine on Thursday, Jan. 14, 2021. He lives at Amenida Seniors Community in Newton. (Submitted photo: Amenida Seniors Community)
A unique-looking deer has been visiting a Nanoose Bay property with its mother. (Frieda Van der Ree photo)
A deer with 3 ears? Unique animal routinely visits B.C. property

Experts say interesting look may be result of an injury rather than an odd birth defect

Standardized foundation skills assessment tests in B.C. schools will be going ahead later than usual, from Feb. 16 to March 12 for students in Grades 4 and 7. (Black Press Media file photo)
B.C. teachers say COVID-affected school year perfect time to end standardized tests

Foundational skills testing of Grade 4 and 7 students planned for February ad March

Sooke’s Jim Bottomley is among a handful of futurists based in Canada. “I want to help people understand the future of humanity.” (Aaron Guillen - Sooke News Mirror)
No crystal ball: B.C. man reveals how he makes his living predicting the future

63-year-old has worked analytical magic for politicians, car brands, and cosmetic companies

Terry David Mulligan. (Submitted photo)
Podcast: Interview with longtime actor/broadcaster and B.C. resident Terry David Mulligan

Podcast: Talk includes TDM’s RCMP career, radio, TV, wine, Janis Joplin and much more

A still from surveillance footage showing a confrontation in the entranceway at Dolly’s Gym on Nicol Street on Friday morning. (Image submitted)
Troublemaker in Nanaimo fails at fraud attempt, slams door on business owner’s foot

VIDEO: Suspect causes pain and damage in incident downtown Friday morning

Seasonal influenza vaccine is administered starting each fall in B.C. and around the world. (Langley Advance Times)
After 30,000 tests, influenza virtually nowhere to be found in B.C.

COVID-19 precautions have eliminated seasonal infection

Most Read