Canada’s annual inflation rate slowed to 7.0 percent in August largely driven by the price of gasoline falling, but the cost of groceries continues to climb.
In its latest monthly consumer price index (CPI) report, Statistics Canada said grocery prices rose at the fastest rate since 1981, with prices up 10.8 percent compared with a year ago.
Still, the national year-over-year inflation cooled more than economists predicted.
“This is about as good of an inflation report as we can hope for,” said BMO’s managing director of Canadian rates and macro strategist Benjamin Reitzes in an email.
On a monthly basis, overall consumer prices were slightly lower in August than in July….