Inflation in Canada hits 18-year high

The Consumer Price Index (CPI) in Canada rose 4.1 percent on a year-over-year basis in August, the fastest pace since March 2003, up from a 3.7 percent gain in July, Report informs referring to Statistics Canada (statcan) website.

The increase in prices mainly stems from an accumulation of recent price pressures and from lower price levels in 2020. Excluding gasoline, the CPI rose 3.2 percent year over year.

The monthly CPI rose 0.2 percent in August.

Prices rose in seven of the eight major components in August, with transportation prices contributing the most to the all-items increase. Conversely, consumers paid less for clothing and footwear, as prices declined year over year.

Year over year, gasoline prices rose 32.5 percent in August, mainly driven by lower production from oil-producing countries compared with pre-pandemic levels. Also contributing to the year-over-year increase were the low-price levels observed in August 2020.