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

Art sessions coming to Keremeos park

Four art programs will be offered in Pine Park From late June through July

Crews building structure at former Summerland train station site

West Summerland Station will pay tribute to railway history, serve as trail marker

$30,000 over 30 weeks for local causes

Send us your good stories and you could win money for your favourite cause

Tap Truck Okanagan launches as first location in Canada

The business is built on a restored 1957 Chevy panel van and ready to serve craft beer on tap, wine or cider

First day back; attending elementary school amid COVID-19

“… Social connections are certainly important for kids,” said Carmi principal Dave Ritchie.

VIDEO: B.C. dentist gets grand welcome home after two months in hospital fighting COVID-19

Michael Chow was given a surprise send off by hospital staff and ‘welcome home’ from neighbours

‘Like finding a needle in a haystack’: Ancient arrowhead discovered near Williams Lake

The artifact is believed to be from the Nesikip period between 7,500 BP to 6,000 BP

Indigenous families say their loved ones’ deaths in custody are part of pattern

Nora Martin joins other Indigenous families in calling for a significant shift in policing

Friends, family mourn Salt Spring Island woman killed in suspected murder-suicide

A GoFundMe campaign has been launched for Jennifer Quesnel’s three sons

PHOTOS: Anti-racism protesters gather in communities across B.C.

More protests are expected through the weekend

Indigenous chief alleges RCMP beat him during arrest that began over expired licence plate

Athabasca Chipewyan Chief Allan Adam calling for independent investigation

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

UPDATED: Pair accused of ‘horrific’ assault at Vancouver’s Oppenheimer Park arrested

Police say Jason Tapp, 30, and Nicole Edwards, 33, did not show up to meet their bail supervisor this week

Most Read