Statistics Canada announced on Wednesday the country’s consumer price index (CPI) fell 0.1 percent m-o-m in August, the same pace as in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 0.1 percent last month, also the same pace as in July.

Economists had predicted inflation would increase 0.1 percent m-o-m and 0.4 percent y-o-y in August.

According to the report, prices rose in five of the eight major components on a year-over-year basis in August, led by gains in prices for food (+1.8 percent y-o-y), shelter and health (+1.5 percent y-o-y) and personal care (+1.4 percent y-o-y), Meanwhile, cost of transport dropped (-1.3 percent y-o-y), mostly due to lower air transportation prices (-16.0 percent y-o-y), which fell as demand for air travel has fallen during the pandemic and airlines continue to offer travel discounts to encourage a return to travel. In addition, prices declines in clothing and footwear (-1.3 percent y-o-y) and recreation, education and reading (-3.1 percent y-o-y).

Meanwhile, the closely watched the Bank of Canada's core index rose 0.8 percent y-o-y in August after a 0.7 percent gain in July.