Canada’s annual inflation rate in August rises lower than expected

Canada’s annual inflation rate rose 1.9 per cent in August as gas prices on a yearly basis fell at a slower pace than the previous month and food prices were up slightly, data showed on Tuesday.

The annual inflation rate has been largely distorted by the cancellation of the carbon levy on petrol sale which has helped bring down the cost of the fuel on a yearly basis, and economists have focused on core inflation measures to gauge the trend of prices.

On a monthly basis, the consumer price index was down 0.1 per cent in August, Statistics Canada said.