Source: Statistics Canada

Canada’s annual inflation rate was at 7% in August of 2022, easing from the 7.6% from the prior month and under market estimates of 7.3%, marking the second straight month that inflation eased.

Growth in transportation costs continued to slow sharply (10.3% vs 14.4%), amid a sharp retreat for gasoline (22.1% vs 35.6%). Prices also decelerated for shelter (6.6% vs 7%), and for recreation, education, and reading (5.7% vs 6.2%). In the meantime, costs continued to pick up for food (9.8% vs 9.2%) and household operations, furnishings, and equipment (5.1% vs 5%).

Excluding gasoline, consumer prices rose by 6.3%, easing from the 6.6% in the prior month. On a monthly basis, consumer prices fell 0.3%, the first decrease since December 2021 and the steepest since the start of the pandemic in April 2020.