According to Statistics Canada, Canada’s consumer price index (CPI) only increased by 2 percent from August 2023 to August 2024, marking the slowest rise in prices in over three years.
Lower gasoline prices played a role in this inflation deceleration, as stated in a September 17 release by StatCan.
The high costs of mortgage interest and rentals are still keeping the CPI elevated, according to the release.
In August, the CPI decreased by 0.2 percent compared to a 0.4 percent increase in July.
Consumers experienced lower prices on items like airfare, clothing, footwear, and travel tours, as reported by StatCan.
Excluding the rise in mortgage interest, the year-over-year CPI increase was 1.2 percent, the release noted.
What Costs More
Housing expenses remain a significant factor contributing to the rising CPI.
Mortgage Interest Rates
In August, mortgage interest costs saw an 18.8 percent year-over-year increase, marking the 12th consecutive month of slower growth following a peak of 30.9 percent in August 2023, according to StatCan.
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Although interest rates are rising at a slower pace, they remain the primary driver of the overall increase in prices since December 2022, according to the organization.
Groceries
Canadians paid 2.4 percent more for food in August 2024, with dairy products increasing by 3.3 percent and fresh fruit by 1.5 percent, as reported by StatCan.
Other price increases at the grocery store include a 1.94 percent increase in meat prices and a 1.51 percent increase in bakery or cereal items.
Other Increases
Consumers have also seen several other price hikes, such as:
- Rental housing, up 7.37 percent
- Property taxes, up 2.43 percent
- Home and mortgage insurance, up 1.5 percent
- Food at restaurants, up 5.97 percent
- Alcohol, up 2.69 percent
- Tuition fees, up 1.54 percent
- Health care goods, up 1.44 percent
- Passenger vehicles, up 5.32 percent
- Public transportation, up 1.62 percent
- Vehicle insurance, up 2.38 percent
- Cellular services, up 1.22 percent
- Internet access, up 0.91 percent
- Child care, up 0.75 percent
- Pet food and supplies, up 0.53 percent
What Costs Less
Gasoline
In August, gasoline prices decreased by over 5 percent year-over-year, following a 1.9 percent increase in July, according to StatCan data.
In August 2023, gas prices rose by 4.6 percent month-over-month, while in August 2024, they fell by 2.6 percent. This marked the third decrease in four months, as per StatCan.
“The decline in August 2024 was mainly due to lower crude oil prices amid economic concerns in the United States and slowing demand in China,” StatCan explained.
Electricity
The cost of electricity dropped at a faster year-over-year rate in August (1.7 percent) compared to July (0.8 percent), with the larger decline in August attributed to high summer demand in 2023.
Other items that experienced lower costs, according to StatCan, include:
- Household furnishings, down 0.8 percent
- Recreation, education, and reading products, down 0.2 percent
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