Statistics Canada set to share national inflation data for August

Statistics Canada will say Wednesday morning what reading the consumer price index registered for August.

The country’s headline inflation barometer clocked in at 3.7 per cent in July, which was the highest year-over-year increase since May 2011 as price growth accelerated from June.

Part of the elevated inflation reading for July was because prices are being compared to the lows seen one year ago during the early months of the pandemic, particularly gasoline and food.

BMO’s Benjamin Reitzes says although August is seasonally a weak month for the consumer price index, that may not hold true this year as he expects an annual inflation rate of 4.1 per cent in the month.

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In a note, he says rising restaurant prices may push up food prices that tend to dip in August and early fall.

He also says the annual inflation rate could be pushed up in August by hot housing prices.