Sep 20, 2022
By Jane Brown
The cost of living in Canada last month was down from July to 7.0 percent, marking the second consecutive month inflation has slowed on an annual basis.
In its latest consumer price index report, Statistics Canada says lower gas prices have largely driven the slowdown.
If you take gas prices out of the equation, year-over-year inflation was 6.3 percent in August.
However, grocery prices rose at the fastest rate since 1981, with food costs up 10.8 per cent compared with August of 2021.
The federal agency attributes the acceleration in food prices to continued supply chain disruptions, the Russian war in Ukraine, extreme weather, and higher input costs.
Caroline Rogers is senior deputy governor of the Bank of Canada and says she feels it will be awhile yet before inflation gets back to a reasonable level.
She says core inflation continues to rise in Canada, so another hike in interest rates is expected.