Canada's Inflation Down to 1.2% in August

Canada consumer prices rose 1.2% in the 12 months to August, following a 1.3% gain in July. Higher prices for the purchase of passenger vehicles, gasoline, meat and food purchased from restaurants were major factors in the year-over-year increase of the August Consumer Price Index (CPI)., Statistics Canada 9/21/2012 1:32:35 PM

Prices for transportation rose 1.8% in the 12 months to August, after rising 1.1% in July. The cost for the purchase of passenger vehicles rose 2.0% and gasoline prices increased 2.2%.

Food prices increased 2.2% year over year in August following a 2.1% advance in July. Leading the August increase were higher prices for meat (+5.7%), food purchased from restaurants (+2.2%), and cereal products (+4.5%). In contrast, prices for fresh vegetables declined.

Shelter costs rose 1.0% in the 12 months to August, matching the increase in July. Increases for homeowner's replacement cost (+2.2%), electricity prices (+3.4%), and rent (+1.4%) were major factors leading to the August rise in shelter costs. Natural gas prices continued to fall on a year-over-year basis.

The only major component which decreased in the 12 months to August was clothing and footwear (-1.2%), led by price declines for women's clothing. At the same time, jewellery prices rose 4.2%.