Canada’s annual inflation rate accelerated for the second month in a row in August, rising by 4% due to higher gas prices.
According to Reuters, economists had expected the consumer price index (CPI) to rise by 3.8% annually.
Statistics Canada said the main reason for the rise in inflation is higher gas prices. Gasoline prices rose 0.8% in August, the first year-on-year increase since January, due in part to the base year effect of lower prices in the same month in 2022.
Rising rent and mortgage rates also contributed to the rise in CPI.
On a monthly basis, the CPI increase rate in August was 0.4%, slowing from the 0.6% month-on-month increase in July. The seasonally adjusted CPI increased by 0.6%.
This will continue in the future.
Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.