Inflation across Canada down for second consecutive month

The year-over-year inflation rate was recorded by Statistics Canada at 7.0 per cent in August, marking the second consecutive month inflation in the country has slowed on an annual basis.

Statistics Canada says declining gas prices have largely driven the slowdown. Gas prices were down 9.6 per cent from July, but are still up 22.1 per cent compared to this time last year. Saskatchewan and Alberta saw the largest gas price decreases in the country.

Excluding gasoline prices, year-over-year inflation was recorded at 6.3 per cent, making August the first month since June 2021 where annual inflation has slowed.

The good news was offset by the higher food bills Canadians continue to pay.

Grocery prices are up 10.8 per cent compared to 2021. That marks the highest rate the country has seen since 1981. Extreme weather, the war in Ukraine and supply chain disruptions are the main factors according to the national number-crunching agency.

Canadians are paying 6.5 per cent more for meat and 7.0 per cent extra for dairy products. Bakery products are costing 15.4 per cent more, fresh fruit is up 13.2 per cent, non-alcoholic beverages are 14.1 per cent more expensive, and condiments, spices and vinegars are up 17.2 per cent compared to this time last year.

Saskatchewan’s inflation rate cooled to 6.8 per cent in August, compared to 8.1 per cent in July.