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Canadians are still feeling the pinch when it comes to shopping for certain items and living expenses, even as inflation has cooled, according to Statistics Canada's new data released Tuesday.
The Consumer Price Index (CPI) climbed two per cent year-over-year in August, Statistics Canada reported. It said it's the slowest pace of growth since February 2021.
The data shows what Canadians spent more or less money on in the last month.
StatCan said mortgage interest cost and rent were still the main contributors behind the CPI's growth in August.
Conversely, some prices were cheaper, notably air transportation, gasoline, clothing and footwear, and travel tours.
For the 12th straight month, the mortgage interest cost index rose at a slower pace year-over-year in August at 18.8 per cent, according to StatCan. However, it has been the top inflation driver since December 2022.
Consumers paid 2.4 per cent more for food from stores in August compared to the same period last year, up from a 2.1 per cent hike in July. Notably, prices rose for dairy products and fresh fruit. Tomatoes had among the steepest hikes, rising 8.7 per cent last month, or 5.3 per cent year-over-year. Grapes were 4.5 per cent pricier last month compared to July, or 7.6 per cent higher year-over-year. People paid 4.3 per cent more for sugar and syrup in August, or 2.1 per cent more year-over-year. Roasted or ground coffee was also up two per cent last month, or 0.9 per cent year-over-year.
Canadians paid 0.6 per cent more last month for fresh and frozen meat, excluding poultry. These pricier meat products cost 6.8 per cent more than they did in August 2023.
Even with the price increases, Canadians got some relief. Among the items that cost less last month were peppers, onions, carrots, cucumbers, frozen and dried vegetables, and ham and bacon.
It was also less painful at the pumps. Gasoline prices declined 2.6 per cent last month compared to July, the third monthly dip in four months.
"The decline in August 2024 was mainly due to lower crude oil prices amid economic concerns in the United States and slowing demand in China," according to StatCan.
Clothing and footwear cost less in August, despite what shoppers usually see in the back-to-school season.
Prices for these items fell 0.6 per cent last month compared to July.
"A drop in prices in the month of August has not been observed since 1971, as this month is typically associated with back-to-school clothes shopping, with stronger demand putting upward pressure on prices," StatCan said.
Grappling with slower demand last month, retailers tried to boost consumer spending with more and bigger discounts, StatCan wrote.
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