Canada Inflation Rate

The annual inflation rate in Canada accelerated to 4.1% in August of 2021 from 3.7% in July and compared to market forecasts of 3.9%. It was the highest inflation rate since March of 2003, with upward pressure stemming from an accumulation of recent price pressures and from lower price levels in 2020. Prices rose in seven of the eight major components, with transportation prices (8.7% vs 6.6%), of which gasoline (32.5% vs 30.9%) contributing the most to the overall increase. Conversely, consumers paid less for clothing and footwear (-0.2%). Excluding gasoline, the CPI rose 3.2%, up from 2.8% in July. On a monthly basis, consumer prices went up 0.2%, slowing from a 0.6% rise in the prior month but slightly above market estimates of a 0.1% increase.