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Canadian CPI (August) — Back to Target
Canadian consumer prices fell 0.2% in August (though they were up 0.1% on a seasonally adjusted basis), with nearly across-the-board weakness, the polar opposite of what we saw in August 2023. The decline, combined with favourable base effects, pulled inflation down to 2% for the first time in over three years. There was particular softness in clothing and household operations (cell phone services prices fell sharply; note that there's a new methodology for that category). Airfares were down sharply as well. The discretionary nature of clothing and airfares highlights the underlying weakness in the economy. Food ... (full story)