National inflation rate reached 4.1% in August, largest increase since 2003

Canada's annual inflation rate reached 4.1 percent in August, according to figures released on Wednesday by Statistics Canada. This after inflation reached 3.7 percent in July.

The report reads: "Since the onset of the COVID-19 pandemic, durable goods have been a major contributor to the increase in the CPI. Durable goods rose at a faster pace in August (+5.7%) compared with July (+5.0%), with passenger vehicles (+7.2%), furniture (+8.7%) and household appliances (+5.3%) contributing the most to the increase.

"In addition, prices for services have accelerated for the fifth consecutive month, rising at a faster pace in August (+2.7%) compared with July (+2.6%) amid easing of COVID-19 restrictions. Year over year, prices for traveller accommodation rose 19.3%. Reopening of businesses and summer travel contributed to the price increases.

"Prices rose in seven of the eight major components in August, with transportation prices contributing the most to the all-items increase. Conversely, consumers paid less for clothing and footwear, as prices declined year over year."

Additionally, meat products saw a rise in August, with prices seeing their "fastest pace" increase in August, rising nearly 7 percent since June 2020.

"Prices for fresh or frozen chicken were up 8.4%, partly based on higher input costs and growing demand from restaurants. Prices for fresh and frozen pork also increased on a year-over-year basis in August (+9.3%), mainly the result of higher input costs and supply chain issues," the report states.

StatCan also showed that homeowner replacement costs saw ab annual rate of 14.3 per cent in August.