Canada’s annual inflation rate picked up in August, bringing it somewhat closer to the central bank’s target as gasoline prices and shelter costs rose, data from Statistics Canada showed on Friday.
The annual inflation rate rose to 1.4 percent last month from 1.2 percent in July, slightly short of economists’ forecasts for 1.5 percent.
Two out of three of the Bank of Canada’s core inflation measures also increased, with CPI common rising to 1.5 percent and CPI trim at 1.4 percent. The central bank says CPI common is the best gauge of the economy’s underperformance.
CPI median, which shows the median inflation rate across CPI components, held steady at 1.7 percent. The Bank of Canada has an overall inflation target of 2 percent.
A 2.8 percent annual increase in transportation costs was among the biggest drivers of total inflation as gasoline prices jumped, while air transportation was also more expensive.
Shelter costs grew 1.3 percent as homeowners paid more to maintain the value of their homes through upgrades. Canadians also paid more for meat and fresh fruit with food prices up 0.9 percent.