Canada’s annual inflation rate remained unchanged in August, with the Consumer Price Index rising three per cent compared with a year earlier, according to Statistics Canada.
The agency reported Tuesday that the August increase matched the three per cent annual inflation rate recorded in July.
While gasoline prices continued to climb compared with last year, the pace of those increases slowed, helping limit overall inflation growth.
Statistics Canada said gasoline prices were up 22.8 per cent year over year in August, following a 25.7 per cent increase in July.
Despite the slower growth rate, gasoline prices remained elevated as conflict in the Middle East continued during the month.
The slowdown in gasoline price growth was offset by higher costs for rent and travel tours.
Travel tour prices rose 26.1 per cent from a year earlier, compared with a 15.2 per cent annual increase in July.
Statistics Canada attributed part of the increase to a base-year effect tied to a sharp decline in Canadian travel to the United States in 2025, which had previously put downward pressure on airfare and travel package prices.
On a monthly basis, travel tour prices fell 2.9 per cent in August.
At the same time, Canadians saw some relief at grocery stores.
Prices for food purchased from stores increased 2.8 per cent year over year in August, down from a 3.1 per cent increase in July.
Statistics Canada said it marked the first time since July 2024 that grocery price growth was lower than the overall inflation rate.
The slowdown in grocery inflation was led by dairy products, which rose 0.7 per cent compared with a year earlier, down from a 3.1 per cent increase in July.
Cheese and yogurt were the main contributors to the easing in dairy prices.
Smaller price increases for fresh or frozen pork, condiments, spices and vinegars, and fresh fruit also contributed to slower grocery price growth.
Despite the moderation, grocery prices remain significantly higher than in recent years.
Statistics Canada reported that food prices purchased from stores have risen 29 per cent since August 2021.
Consumers also paid less for clothing in August than they did a year earlier. Clothing prices fell 1.1 per cent following a 0.9 per cent increase in July.
The decline was driven by lower prices for men’s and children’s clothing. Women’s clothing prices were unchanged from a year earlier after declining in July.
Regionally, price growth accelerated in six provinces in August.
Statistics Canada said the Atlantic provinces recorded the highest inflation rates in the country, with inflation accelerating in Prince Edward Island, Newfoundland and Labrador, and Nova Scotia.
The agency said rising fuel oil and other fuel costs were a key factor, with prices increasing 43.7 per cent year over year compared with 29.5 per cent in July.
Nationally, rent prices increased 2.8 per cent year over year in August, up from 2.5 per cent in July.
Statistics Canada said higher rent costs in Manitoba and Ontario contributed to the acceleration.
On a monthly basis, the Consumer Price Index fell 0.1 per cent in August.
On a seasonally adjusted basis, the index rose 0.2 per cent.
