Statistics Canada reported on Wednesday the country’s consumer price index (CPI) edged down 0.1 percent m-o-m in August, following a 0.5 percent m-o-m advance in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 1.9 percent last month after a 2.0 percent increase in July.

Economists had predicted inflation would decrease 0.1 percent m-o-m but gain 2.0 percent y-o-y in August.

According to the report, the slowdown in headline inflation was primarily due to lower gasoline prices (-10.2 percent y-o-y). Excluding gasoline, the CPI rose 2.4 percent y-o-y, matching the gain in July.

Meanwhile, the closely watched the Bank of Canada's core index rose 1.9 percent y-o-y in August, decelerating from 2.0 percent in the previous month. Economists had forecast an advance of 2.2 percent y-o-y.