Statistics Canada Releases August Consumer Price Index

Sep 15, 2021 By MarketDepth

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Minister of Finance Chrystia Freeland

Canada’s consumer price index in August rose 4.1% compared with a year ago, the largest year-over-year inflation increase since March 2003 and up from a 3.7% gain in July, according to Statistics Canada.

Price Increase

The increase in prices “mainly stems from an accumulation of recent price pressures and from lower price levels in 2020.” Durable goods rose 0.7% faster in August (+5.7%) compared with July. Additionally, passenger vehicles (+7.2%), furniture (+8.7%) and household appliances (+5.3%) contributed the most to the increase, according to the report. 

Home Prices Fast Increase

The growth of housing prices was the fastest yearly increase since September 1987 and marked the fourth consecutive month of double-digit price growth, as homeowner replacement costs rose at an annual rate of 14.3% in August. Year over year, gasoline prices also rose 32.5% in August, although the low price levels observed in August 2020 helped contribute to the increase. 

Meat Prices Increasing

Additionally, year over year, overall prices rose at a faster pace in August than in July in every province, with prices for meat products rising at the fastest pace in August (+6.9%) since June 2020 (+8.1%).