Inflation ticks higher to 1.9% in August, short of economists’ expectations

By Canadian Press on September 16, 2025.

OTTAWA — Statistics Canada says the annual pace of inflation rose to 1.9 per cent in August thanks to some stubbornness as the gas pumps.

The agency says gasoline prices rose 1.4 per cent month-over-month in August as higher refining margins offset lower crude costs.

Even though gas prices were down compared with last year, the decline fell short of July’s drop, so that pushed the headline inflation figure higher.

Heading into the release, economists had expected inflation would rise to two per cent, from 1.7 per cent in July.

It was a mixed bag at the grocery store last month as Statistics Canada says price growth for meat accelerated but the cost of fresh fruit fell, particularly for grapes and cherries.

The Bank of Canada will have a day to digest the new price readings before the central bank makes its interest rate decision on Wednesday.

This report by The Canadian Press was first published Sept. 16, 2025.

Craig Lord, The Canadian Press

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