Gas prices locally on Monday morning were among the lowest in the province according to GasBuddy.com. Most stations in the city were at $1.13.9 for regular self serve while the Super Save station on Green Mountain Road was at $1.12.9. (Mark Brett - Western News)

Canadian inflation decelerates to 1.9% as gas prices weaken

August was the sixth straight month that price growth was 1.9 per cent or higher

Canada’s annual inflation rate slowed slightly to 1.9 per cent in August under the weight of declining gasoline prices.

Inflation was firm enough to stick close to the Bank of Canada’s ideal two per cent target — and August was the sixth straight month that price growth was 1.9 per cent or higher.

The price picture, on its own, did not put pressure on the inflation-targeting Bank of Canada to adjust interest rates.

Excluding pump prices, the consumer price index was up 2.4 per cent from a year ago, Statistics Canada said Wednesday in a new report. Gas prices fell 10.2 per cent last month, which followed a decrease of 6.9 per cent in July.

Price growth was also held back last month, compared with a year earlier, by lower costs for traveller accommodation, internet access services and furniture.

On a month-to-month basis, the price of pork declined 2.7 per cent at a time when Canadian pork products are facing tougher restrictions in the key Chinese market. Consumers also paid 6.5 per cent less for fresh vegetables — the largest decline in five years — as temporary price increases due to poor weather in growing regions eased off.

READ MORE: Inflation hits Bank of Canada 2% target for second straight month

The upward pressure on consumer prices, year-over-year, was led by higher costs for airline tickets, mortgage interest and auto insurance.

The cost of air travel climbed 10.3 per cent in August. The increase was largely related to the impact of the grounding of Boeing 737 Max jets during the busy summer travel season, the report said.

Natural gas prices rose to 5.8 per cent last month, up from a 3.2 per cent increase in July.

The average of Canada’s three gauges for core inflation, which are considered better measures of underlying price pressures by excluding volatile items like gas, hit the central bank’s target at two per cent. The reading was 2.03 per cent in July.

Canada’s domestic economy has been resilient even as trade wars inject significant uncertainty into the slowing global economy.

Many forecasters have been expecting the Bank of Canada to cut its overnight lending rate before the end of the year and perhaps as early as its Oct. 30 policy announcement.

Economists on average had expected an inflation reading of 2.0 per cent for August, according to financial markets data firm Refinitiv.

This report by The Canadian Press was first published Sept. 18, 2019.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Addiction leads to jail for Ponoka man

Man pleads to nine out of 21 charges that included property offences

PHOTOS: Children’s Christmas Shopping Party

Helpful elves: The Children’s Christmas Shopping Party, sponsored by the Ponoka and… Continue reading

REFLECTIONS: They came from Nova Scotia to the pristine countryside near Ponoka

By Mike Rainone for the News The rugged, challenging, and colourful saga… Continue reading

Proposed health care changes would be “devastating” to rural family practice: president of AMA

AHS, AMA and MLA Ron Orr chime in on recent health care announcements

There’s still time to stamp your Passport to Christmas

There are 50 Ponoka businesses participating

VIDEO: Kenney lays out key demands for meeting with Trudeau

Alberta Premier Jason Kenney aims for clear signs of federal action on two-day Ottawa trip

Teen seriously injured: Police in Lethbridge, Alta., charge 5 people in swarming

Police say a 16-year-old boy made arrangements to meet with a young woman before he was attacked

PODCAST: The Expert welcomes AA Lacombe General Jared Williams

Lacombe resident joined Red Deer Advocate Sports Reporter Byron Hackett and Host Todd Vaughan

No reports yet of Canadians affected by New Zealand volcano eruption, feds say

Missing and injured included tourists from the U.S., China, Australia, Britain and Malaysia

Online ‘direct threats’ lead to cancellation of school dance in Blackfalds

Threats resulted from Grade 4 social studies class discussing energy sector

Blackfalds RCMP warn of poor driving conditions on QEII

Vehicles have been involved in collisions and are in the ditch

MP Blaine Calkins: Alberta left behind in Speech from the Throne

Liberal course does nothing for Alberta economy, crime

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

Ponoka RCMP seeking public assistance in locating missing person

Ponoka RCMP is seeking the public’s assistance in locating 35 year old… Continue reading

Most Read