Consumer Price Index Report for August 2024

The Consumer Price Index (CPI) for August 2024 has been reported by Statistics Canada. The CPI rose by 2.0% on a year-over-year basis, marking the slowest increase since February 2021, down from a 2.5% gain in July 2024.

Key points include:

• The deceleration in inflation was influenced by lower gasoline prices, which were affected by both a decrease in prices and a base-year effect. Excluding gasoline, the CPI increased by 2.2% in August, a decline from 2.5% in July.
• The largest contributors to the CPI increase were mortgage interest costs and rent.
• On a monthly basis, the CPI fell by 0.2% in August, following a 0.4% increase in July. This decline was primarily driven by lower prices for air transportation, gasoline, clothing and footwear, and travel tours.
• Food prices increased by 2.4% year-over-year, influenced by higher prices for dairy products and fresh fruit. However, grocery prices saw a month-over-month decrease of 0.2%, largely due to a seasonal decline in fresh vegetable prices.
• Clothing and footwear prices decreased by 0.6% month-over-month, a notable decline for August, which typically sees increased demand due to back-to-school shopping. Year-over-year, these prices fell by 4.4%.

The next release of the Consumer Price Index for September is scheduled for October 15, 2024.