Canada: Annual inflation rate reaches 1.4% in August

Canada’s annual inflation rate continued to rise to the highest level for four months during August, driven by an increase in costs for gasoline, hotels and airline tickets.

"Statistics Canada reported that consumer-price-index inflation rose to 1.4%, an increase from 1.2% during July. It has been speculated that this latest news may lead the Bank of Canada towards another interest-rate hike before the end of the year."

Statistics Canada reported that consumer-price-index inflation rose to 1.4%, an increase from 1.2% during July. It has been speculated that this latest news may lead the Bank of Canada towards another interest-rate hike before the end of the year.

The central bank has commented that inflation had been held back by temporary factors. Now, with the recent increase and relatively stable trends in inflation, many economists believe that will keep the central bank on target for a third quarter-point rate hike of the year.

However, the 1.4% inflation rate remains below the central bank’s 2% inflation rate target.

 

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