Canada's Inflation Rises to 3.1% in August

The Consumer Price Index (CPI) rose 3.1% in the 12 months to August, mainly as a result of higher prices for gasoline and food purchased from stores. This follows increases of 2.7% in July and 3.1% in June. On a seasonally adjusted monthly basis, consumer prices rose 0.3% in August., Statistics Canada 9/21/2011 4:30:17 PM

The 0.4 percentage point difference between the year-over-year increases posted in August and July was mainly the result of price increases for the purchase of passenger vehicles, electricity, homeowners' home and mortgage insurance, telephone services and jewellery.

Energy prices rose 13.4% during the 12 months to August, following a 12.9% increase in July. Gasoline prices went up 22.8%, compared with the 23.5% increase in July. Prices for fuel oil and electricity also rose, while natural gas prices fell.

Food prices went up 4.4% in August, following a 4.3% increase in the previous month. Consumers paid 5.0% more for food purchased from stores and 2.7% more for food purchased from restaurants.

Food and energy prices rose 7.2% in August, following a 7.1% increase in July. Excluding food and energy, the CPI increased 1.5% in August after advancing 1.2% in the previous month.