Canadian inflation was slightly lower in August at 1.2 per cent, down from 1.3 in July, with lower prices on clothing and natural gas fuelling the change, according to data from Statistics Canada released on Sept. 21.
On a seasonally adjusted monthly basis, the CPI increased 0.4 per cent in August, after decreasing for three consecutive months.
The underlying core inflation rate, which excludes gasoline and seven other volatile items, decreased to 1.6 per cent, well below the Bank of Canada’s target of 2 per cent.
Energy prices rose 0.8 per cent since August 2011 after three consecutive months of year-over-year declines.
Gasoline prices rose 2.2 per cent in the 12 months to August, after a 1.3 per cent decline in July. The largest increases came from Manitoba and Quebec, with New Brunswick being the only province to post a decline in August.
Food prices rose 2.2 per cent, up slightly from July, while various other areas experienced declines. The cost of natural gas was down by 13.9 per cent, video equipment by 15.6 per cent, women’s clothing by 3.4 per cent and furniture by 3.0 per cent.
In the United States, the CPI rose the most it has since August 2009, jumping 0.6 per cent. The U.S. labour department attributed 80 per cent of the jump to rising gasoline costs, according to Bloomberg. Core inflation, excluding food and energy, was up 0.1 per cent.
© Copyright Canadian HR Reporter, HAB Press. All rights reserved.