Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation was flat in August, in line with expectations, after a 0.1% gain in July.

On a yearly basis, the consumer price index remained unchanged at 1.3% in August, in line with expectations.

The consumer price index was partly driven by higher food prices. Food prices climbed 3.6% year-on-year in August, while household operations, furnishings and equipment prices increased 2.5%.

Alcoholic beverages and tobacco prices climbed by 2.8% in August from the same month a year earlier, while gasoline prices dropped 12.6%.

The Canadian core consumer price index, which excludes some volatile goods, rose 0.2% in August, after a flat reading in July.

On a yearly basis, core consumer price index in Canada was down to 2.1% in August from 2.4% in July, in line with expectations.

The Bank of Canada's inflation target is 2.0%.