Gas prices went up 8.6% year-over-year.
A rise in gas prices, traveler accommodation, and air transportation led to an increase in Canada’s inflation rate. The rate was 1.4% in August, up from a 1.2% increase in July.
According to Statistics Canada, inflation rose in nine out 10 provinces. Inflation was flat in Manitoba.
Additionally, retail trade in increased by 0.4% in July, a small number that has some believing Canada’s economy will start slowing down.
Gas prices went up 8.6%, traveler accommodation prices were up 6.3%, and air transportation prices went up 6.2%.
Economist Sal Guatieri told the Canadian Press that interest rate hikes and rising debt loads will take a toll on consumer spending.
The combination of slowing consumer spending, and recent weakness in manufacturing and exports (along with a rising trade deficit), doesn’t bode well.
Concerningly, these increases in gas prices is happening before the carbon tax is imposed nation-wide. As a result, we can expect the cost of living to rise even further.