The Consumer Price Index rose by 1.1% in August compared with August 2015, down from the annualized increase of 1.3% in July.
The CPI in August for goods was up 0.3% from a year earlier while the CPI for services rose 1.8%.
Gasoline prices in August were down 11.5% from August 2015, after dropping 14.0% in July. Overall, energy prices declined 5.8% between August 2015 and August 2016, following a 7.4% annualized rate of decrease in July. Excluding energy, the annualized Consumer Price Index rose 1.8% in August, after a year-over-year increase of 1.9% in July.
Food prices rose 1.1 % in the 12 months to August, following the 1.6% rate of annualized increase posted in July. The cost of food purchased from stores in the 12 months to August grew by 0.4%, down from a 1.1% increase in July. The August year-over-year increase in food purchased from stores was the smallest since June 2010. The meat index decreased in August after increasing in July and the fresh fruit index posted its first decline since December 2013. Prices for food purchased from restaurants rose 2.5% year-over-year after a 2.7% increase in July.
Costs associated with shelter rose 1.7% in August over August 2015. The rate of annualized gain in July was 1.6%. Homeowners’ replacement costs (+4.0%) contributed the most to the annualized increase in August. Electricity prices were up 5.6% on a year-over-year basis in August, while the natural gas index declined 9.9%.
Consumers paid 1.7% more for household operations, furnishings and equipment in August compared to August 2015, down from the 1.8% year-over-year increase recorded in July.
Transportation prices rose 0.3% in the 12 months to August 2016, after an annualized decline of 0.2% in July. Gasoline prices posted a smaller year-over-year decrease in August (-11.5%) than in July (-14.0%). The purchase of passenger vehicles index rose 5.2% in the 12 months to August 2016, following a 5.4% increase in July.
In the 12 months to August 2016, consumer prices rose in all ten provinces. The CPI grew the most in Newfoundland and Labrador (+3.0%), followed by New Brunswick (+2.2%) and British Columbia (+2.0%). The lowest annualized increase occurred in Quebec (+0.1%). Consumer prices in Ontario were 1.5% higher than in August 2015.