Canada’s annual rate of inflation holds at 3% in August: StatCan

The annual rate of inflation stayed at three per cent in August due to a slowdown in rising gas prices being offset by higher rent and travel tour costs, according to Statistics Canada.

StatCan reports that gasoline costs continued to increase in August at a slower pace.

The agency says prices were up 22.8 per cent compared with 25.7 per cent a month earlier, as the conflict in the Middle East continued to weigh on prices.

Consumer prices rose 2.4 per cent last month excluding gasoline.

For the first time in over two years, grocery prices increased at a slower pace than overall inflation, rising by 2.8 per cent year-over-year, according to StatCan.

However, the agency says consumers paid more for travel due to fuel surcharges rising while airlines adjusted to the sharp decline in Canadian travel to the United States last year.

StatCan says rent prices rose 2.8 per cent year-over-year in August, an increase from 2.5 per cent in July.

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