Inflation cools sharply to 2% in August, hitting Bank of Canada’s target
inflation cooled sharply to two per cent in August, according to Statistics Canada, marking a major milestone in the Bank of Canada’s efforts to tame price pressures.That’s half a percentage point lower than the 2.5 per cent annual rate recorded in July and continues a general cooling trend through 2024.The last time inflation was at or below two per cent was in early 2021.Statistics Canada pointed to cheaper prices on gasoline as driving down the headline inflation figure in August. Without the drop in gas prices, annual inflation would’ve been 2.2 per cent in August, StatCan said.Grocery prices rose 2.4 per cent annually in August, up from 2.1 per cent in July, mostly because of comparisons to sizeable price movements the same time last year.On a monthly basis, grocery prices were down 0.2 per cent from July to August, StatCan noted, thanks largely to seasonal drops in fresh vegetable costs.Another part of the basket seeing monthly prices drops last month was clothing and footwear, down 0.6 per cent.StatCan noted how rare this is — it’s the first time prices have fallen here in August since 1971 — given the month marks back-to-school shopping season.
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