Annual inflation rate slowed to 7 per cent in August, Statistics Canada says

Ottawa –

Statistics Canada says the national year-over-year inflation rate was 7.0 per cent in August, marking the second consecutive month inflation has slowed on an annual basis.

In its latest consumer price index report, the federal agency says lower gas prices have largely driven the slowdown.

Excluding gasoline prices, year-over-year inflation was 6.3 per cent, making August the first month since June 2021 where annual inflation excluding gasoline has slowed.

Statistics Canada says transportation and shelter prices drove the deceleration in consumer prices.

However, grocery prices rose at the fastest rate since 1981, with prices up 10.8 per cent compared with a year ago.

The federal agency attributes the acceleration in food prices to continued supply chain disruptions, the Russian invasion of Ukraine, extreme weather, and higher input costs.

This report by The Canadian Press was first published Sept. 20, 2022

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