September 16, 2025
RED FM News Desk
Canada’s inflation rate rose slightly to 1.9% in August, pushed higher by stubbornness at the gas pumps, according to a report from Statistics Canada on Tuesday. This increase was less than the 2% that economists had widely expected.
The annual inflation rate rose from 1.7% in July. Gas prices, in particular, saw a month-over-month increase of 1.4% in August, as higher refining margins countered lower crude oil costs. Despite this, gas prices were still down 12.7% annually due to the elimination of the consumer carbon price earlier this spring.
When gas prices are excluded, the inflation rate was 2.4% in August, a slight decrease from the previous three months.
The report noted mixed results for grocery costs last month. The annual price of groceries rose by 3.5% in August, a tenth of a point higher than in July. The cost of meat accelerated, with fresh and frozen beef surging by 12.7%. However, the price of fresh fruit dropped by 1.1%, reversing a July gain, largely due to lower prices for grapes and cherries.
Rising rents and mortgage interest costs continue to be the biggest factors driving the annual inflation rate higher.
The Bank of Canada has one day to review these new figures before making its interest rate decision. Most economists expected the central bank to deliver a quarter-point cut on Wednesday.
Loading ...
