The annual inflation rate for August receded somewhat to 2.8 per cent, easing from July’s three per cent pace that marked Canada’s highest reading in seven years. Last month’s step back was largely due to more-moderate expansion in gasoline prices, Statistics Canada said Friday as it released its latest consumer price index. Ahead of its rate decisions, the Bank of Canada also keeps close watch on the three measures of underlying inflation, which strip out more-volatile items like gas prices. Excluding gas prices, the inflation rate was 2.2 per cent last month. Statistics Canada said this was mostly due to increased availability of following-year models compared with a year ago.

Source: National Post September 21, 2018 12:44 UTC