Statistics Canada says the country’s annual inflation rate reached 4.0% last month, up from 3.3% in July.
The rise in inflation was largely fueled by gasoline prices, which climbed on an annual and monthly basis.
August marks the second consecutive month of rising inflation and economists expect progress in reducing inflation to stall in the coming months.
The federal agency says that although price growth accelerated on an annual basis, prices rose more slowly month over month as prices for package tours and air travel fell.
Furthermore, the prices of grocery products increased at a slower annual rate, 6.9% compared to the previous year, compared to 8.5% the month before.
Between July and August, grocery prices decreased by 0.4%.
To watch on video