Statistics Canada reported that Canada's yearly inflation rate increased to 4.0% in August, up from 3.3% in July. .This jump was primarily due to higher gasoline prices and two out of the three core inflation measures also increased..Canada’s inflation rate continues to go up. It was 2.8% in June and 3.3% in July..Economists had predicted that inflation would reach 3.8%. The Consumer Price Index (CPI) increased by 0.4% compared to July, exceeding the expected gain of 0.3%..The inflation rate in August, which was the highest since April's 4.4%, significantly exceeds the Bank of Canada’s (BoC) target of 2%..The primary factor behind this increase was a year-on-year rise of 0.8% in gasoline prices, which had experienced a 12.9% decrease in the 12 months leading up to July..Two of the three BoC’s core measures of underlying inflation also showed increases..CPI-median increased to 4.1% from 3.9% in July, while CPI-trim increased to 3.9% from 3.6%..Housing prices in August increased by 6.0%, following a 5.1% increase in July. Rising rents and higher mortgage interest rates partly drove this increase..Bank of Canada Governor Tiff Macklem stated on September 7 that "headline inflation is going to go up in the near term before it eases” due to rising oil prices..READ MORE Rising gas prices forces Bank of Canada to warn of further rate increases.On September 6, the BoC kept its key overnight interest rate at 5%. They said the economy had entered a slower growth phase but also mentioned that they might increase borrowing costs again if inflationary pressures continued..READ MORE Macklem says ‘no recession here’ but possible ‘technical recession’
