The Consumer Price Index (CPI) rose 1.9% on a year-over-year basis in August, up from a 1.7% increase in July. Gasoline prices fell to a lesser extent year over year in August (-12.7%) than in July (-16.1%), leading to faster growth in headline inflation. Excluding gasoline, the CPI rose 2.4% in August, after increasing 2.5% in each of the previous three months. Moderating the acceleration in the all-items CPI were lower prices for travel tours and fresh fruit compared with July. The CPI decreased 0.1% month over month in August. On a seasonally adjusted monthly basis, the CPI was up 0.2%. On a yearly basis, prices ... (full story)

Canada’s annual inflation rate climbed to 1.9 per cent in August, according to Statistics Canada data published Tuesday. Financial industry observers had expected the inflation rate to increase to 2 per cent, according to consensus estimates published by CIBC Economics. The August data come one day before the Bank of Canada’s (BoC) interest rate announcement, a schedule that economists have noted adds additional uncertainty. The inflation data “could solidify the BoC’s rate decision, if waning inflation momentum, especially in core measures, shows through,” TD economist Marc Ercolao wrote in a note to clients before ... (full story)