Daily – Consumer Price Index, August 2022

Release date: 09-20-2022

Consumer Price Index

August 2022

7.0%

(change for 12 months)

In August, the Consumer Price Index (CPI) increased 7.0% year-on-year, down from 7.6% in July. This was the second consecutive slowdown in year-on-year price growth, and was largely driven by lower gasoline prices in August compared to July.

Excluding gasoline, prices rose 6.3% year-on-year in August, after increasing 6.6% in July. This is the first month since June 2021 on a yearly basis CPIexcept for gasoline, slowed down.

On a monthly basis, the CPI It fell 0.3% in August, the largest monthly decline since the early months of COVID-19 The pandemic. On a seasonally adjusted monthly basis, the CPI It rose 0.1%, the smallest gain since December 2020.

Transportation (+10.3%) and shelter (+6.6%) prices led the slowdown in consumer prices in August. The slowdown in prices kept grocery prices still high, with store-bought food prices rising (+10.8%) at the fastest pace since August 1981 (+11.9%).

Year-on-year growth in goods and services prices slowed in August. As non-durable goods slowed (+10.8%) due to lower prices at the pump, services related to travel and shelter services contributed the most to the slowdown in services prices (+5.5%). Prices for durable goods (+6.0%), such as passenger cars and appliances, also grew at a slower rate in August.

in August, Average hourly wages rose 5.4%. On an annual basis, which means that prices, on average, have risen faster than wages. Although Canadians have seen a decline in purchasing power, The gap was smaller than in July.

Chart 1

Graph 1: 12-month change in CPI and CPI excluding gasoline


12-month change in CPI and CPI excluding gasoline

Graph 1: 12-month change in CPI and CPI excluding gasoline

Explore CPI Tools

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Graph 2

Chart 2: Prices rise at slower pace in August in four major components
Prices rise at a slower pace in August in four main components

Chart 2: Prices rise at slower pace in August in four major components

Gasoline prices are rising at a slower pace year by year

On an annual basis, gasoline prices rose less in August (+22.1%) than in July (+35.6%). On a monthly basis, gasoline prices fell 9.6% after a drop in July (-9.2%). This was the largest monthly decline since April 2020.

The monthly decrease in gas prices in August compared to July is mainly due to Higher global production by oil-producing countries. According to data from Natural Resources Canada, refining marginsalso fell from Higher levels in July.

Chart 3

Chart 3: Second consecutive decline in monthly gas prices
The second consecutive decline in monthly gas prices

Chart 3: Second consecutive decline in monthly gas prices

Traveler accommodation price growth slows, but remains high

Passenger accommodation rates (+33.0%) increased at a slower pace year-over-year in August than in July. The slowdown was mainly due to the sharp monthly price increase in August 2021 (+12.0%), the first of August since the start of the pandemic as COVID declines-19 applicable health related restrictions.

Durable goods prices are rising at a slower rate

Annual growth in durable goods slowed to 6.0% in August, after rising 7.0% in July. Home appliances prices rose (+9.0%) in August lower than in July (+11.5%) amid Low consumer demand. The slowdown in price growth is observed for refrigerators and freezers (+ 12.0%), washing and dishwashing appliances (+ 9.3%) and cooking appliances (+ 7.9%).

The passenger car purchase index rose 7.3% year-on-year in August, down from an 8.2% increase in July. The rise in passenger car prices in August 2021 contributed to the annual slowdown in August 2022. In the same month the previous year, prices rose amid a global shortage of semiconductor chips reducing discounts available to consumers. On a monthly basis, used vehicle prices (-0.7%) in August.

Home price growth continues to slow

In August, annual home price growth (+6.6%) continued to slow. Other owned accommodation expenses, which includes real estate sale commissions, slowed year-over-year in August (+7.4%) compared to July (+9.7%). The homeowners replacement cost index (+8.4%), which is linked to new home prices, also slowed in August. These moves reflect a general cooling in the housing market.

Conversely, the mortgage interest cost index rose at a faster rate in August (+4.8%) than in July (+1.7%), the fastest pace since January 2020. The increase occurred amid higher bond yields and a higher interest rate environment.

Chart 4

Chart 4: Other Owned Residence Expenses and Homeowners Replacement Costs Slow, While Mortgage Interest Costs Accelerate
Other Owned Accommodation Expenses and Homeowners Replacement Costs Slow Down, While Mortgage Interest Costs Accelerate

Chart 4: Other Owned Residence Expenses and Homeowners Replacement Costs Slow, While Mortgage Interest Costs Accelerate

Grocery prices are rising at the fastest rate since 1981

Store-bought food prices continued to rise in August (+10.8%), rising at the fastest pace since 1981 (+11.9%). The food supply continued to be affected by several factors, including severe weather, rising input costs, the Russian invasion of Ukraine, and supply chain disruptions.

Food price growth remained broad. On an annual basis, Canadians paid more for meat (+6.5%), dairy (+7.0%), bakery products (+15.4%), fresh fruit (+13.2%), non-alcoholic beverages (+14.1%), and condiments, condiments and vinegars. (+ 17.2%), sugar and sweets (+ 11.3%), fish, seafood and other sea products (+ 8.7%).

graph 5

Graph 5: Canadians pay more for many groceries
Canadians pay more for many groceries

Graph 5: Canadians pay more for many groceries

Regional Highlights

On an annual basis, prices rose at a slower pace in August than in July in every county.

Chart 6

Graph 6: The CPI is rising at a slower pace in every province
The CPI is rising at a slower pace in every county

Graph 6: The CPI is rising at a slower pace in every province

Gasoline prices fell the most in Saskatchewan and Alberta

Gasoline prices fell month on month in every county in August compared to July, contributing even more to the annual slowdown.

Among the provinces, gasoline prices fell the most in Saskatchewan (-17.0%) and Alberta (-17.0%) on a monthly basis in August. This decline coincided with Lower Margins for Retailerwhich is the difference between the price a company pays for a product and the price at which it sells the product to consumers.

Note to readers

Discover Answers to the most frequently asked questions Subtract about the consumer price index (CPI) in the context of COVID-19 The pandemic and its aftermath.

Real time spreadsheets

real time spreadsheet 10-18-0259-01 It will be updated on October 3. For more information, see the document “Real time spreadsheets. “

Next version

The CPI For September it will be released on October 19.

products

The Consumer Price Index Data Visualization Tool is available on the Statistics Canada website.

More information on the concepts and use of the consumer price index (CPI) available in Canadian Consumer Price Index Reference Sheet (Catalog number62-553-X).

For information about the history CPI In Canada, see the post Exploring the first century of Canadian CPI (Catalog number62-604-X).

two video clips,”Canadian Consumer Price Index (CPI) Overview” And the “The consumer price index and your experience with changing pricesAvailable on the Statistics Canada YouTube channel.

Discover Answers to the most frequently asked questions Ask about CPI In the context of COVID-19 and beyond.

Contact Information

For more information, or to inquire about concepts, methods or data quality for this release, contact us (free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).