Canada’s Inflation Jumps in August
In August, Canada witnessed its annual inflation rate soar to 4.0%, up from 3.3% in July. This unexpected surge, largely attributed to a spike in gasoline prices, was higher than analysts’ prediction of 3.8%. On a monthly basis, the consumer price index experienced a rise of 0.4%, a slight overshoot from the anticipated 0.3%.
Gasoline’s Significant Role
Gasoline prices, which had witnessed a 12.9% decline in the 12-month period leading up to July, experienced a year-on-year hike of 0.8% in August. This substantial shift became the primary catalyst for the increased inflation rate, marking the highest since the 4.4% observed in April.
Underlying Inflation Measures Rise
Of the Bank of Canada’s three core measures for underlying inflation, two reported increases….
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