Canada’s headline CPI rose to 1.9% yoy in August, up from 1.7% yoy in July but slightly below market expectations of 2.0% yoy. The increase was largely due to a smaller year-on-year drop in gasoline prices, which fell -12.7% yoy in August compared with -16.1% yoy in July. Excluding gasoline, inflation rose 2.4% yoy, moderating slightly from the consistent 2.5% yoy pace of recent months.
Underlying price pressures showed further signs of cooling. CPI median measure held steady at 3.1% yoy, while the CPI trimmed eased from 3.1% yoy to 3.0% yoy, both matching expectations. CPI common measure slowed to 2.5% yoy, undershooting forecasts of 2.6% and marking a softening in broad-based inflation.
