Canada’s annual inflation rate grew at the fastest rate in 18 years at 4.1% in August driven by a large spike in rising petrol prices as reported by the Canadian Department of Statistics on Wednesday.
The reported readings were higher than analysts expected. Analysts simply expect an increase of 3.9% in August after a rise of 3.7% in July. The inflation rate in August was the highest since 4.2% recorded in March 2003.
Petrol prices rose 32.5% when compared to a year ago driven by lower production from oil-producing countries when compared to pre-pandemic levels.
The three core inflation measures all increased. The normal CPI, which the Bank of Canada cited as a measure of the economy’s low performance, rose to 1.8% from 1.7% achieved in July.
The Canadian currency strengthened slightly against the US dollar at the exchange rate of C $ 1.2671 or 78.92 U.S. cents.
