Gas prices locally on Monday morning were among the lowest in the province according to GasBuddy.com. Most stations in the city were at $1.13.9 for regular self serve while the Super Save station on Green Mountain Road was at $1.12.9. (Mark Brett - Western News)

Canadian inflation decelerates to 1.9% as gas prices weaken

August was the sixth straight month that price growth was 1.9 per cent or higher

Canada’s annual inflation rate slowed slightly to 1.9 per cent in August under the weight of declining gasoline prices.

Inflation was firm enough to stick close to the Bank of Canada’s ideal two per cent target — and August was the sixth straight month that price growth was 1.9 per cent or higher.

The price picture, on its own, did not put pressure on the inflation-targeting Bank of Canada to adjust interest rates.

Excluding pump prices, the consumer price index was up 2.4 per cent from a year ago, Statistics Canada said Wednesday in a new report. Gas prices fell 10.2 per cent last month, which followed a decrease of 6.9 per cent in July.

Price growth was also held back last month, compared with a year earlier, by lower costs for traveller accommodation, internet access services and furniture.

On a month-to-month basis, the price of pork declined 2.7 per cent at a time when Canadian pork products are facing tougher restrictions in the key Chinese market. Consumers also paid 6.5 per cent less for fresh vegetables — the largest decline in five years — as temporary price increases due to poor weather in growing regions eased off.

READ MORE: Inflation hits Bank of Canada 2% target for second straight month

The upward pressure on consumer prices, year-over-year, was led by higher costs for airline tickets, mortgage interest and auto insurance.

The cost of air travel climbed 10.3 per cent in August. The increase was largely related to the impact of the grounding of Boeing 737 Max jets during the busy summer travel season, the report said.

Natural gas prices rose to 5.8 per cent last month, up from a 3.2 per cent increase in July.

The average of Canada’s three gauges for core inflation, which are considered better measures of underlying price pressures by excluding volatile items like gas, hit the central bank’s target at two per cent. The reading was 2.03 per cent in July.

Canada’s domestic economy has been resilient even as trade wars inject significant uncertainty into the slowing global economy.

Many forecasters have been expecting the Bank of Canada to cut its overnight lending rate before the end of the year and perhaps as early as its Oct. 30 policy announcement.

Economists on average had expected an inflation reading of 2.0 per cent for August, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Sept. 18, 2019.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Voting now ready for Arts Alive 2020 sculptures

Audio and written descriptions posted for all 10 sculptures

Almost half of Canadian university students fear they cannot pay rising tuitions

COVID-19 also diminishing expectations for job market

Saanich’s autumn full-moon lantern celebration shifts to drive-thru

Harvest Moon event takes place Sept. 26 in Gordon Head

Oak Bay Police bring home a West Shore grad

Const. Jake Colwell brings ‘conflict resolution and communication skills’

Cook Street Village grocery icon closing, new owners plan major renovation

Louie family has operated Oxford Foods and predecessor for five decades at Cook and Oxford streets

POLL: Do you agree with the decision to call a provincial election for Oct. 24?

British Columbians will put their social distancing skills to the test when… Continue reading

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Rare fish washes onto Whiffin Spit in Sooke

Deep water fish identified as ‘King-of-the-salmon’

BC Liberal Leader talks drug addiction in the Lower Mainland

Drug addiction and public safety a top priority says Andrew Wilkinson

Island Corridor Foundation launches survey on importance of Vancouver Island rail

“ICF remains 100 per cent committed to the restoration of full rail service on Vancouver Island”

Island RCMP remind drivers not to text after 19 tickets handed out in 90 minutes

The $368 fines were handed out Tuesday on Norwell Drive and Old Island Highway in Nanaimo

Vanderhoof’s Brian Frenkel takes on top job in tough times

We can get through this, new local government leader says

Most Read