Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.2 percent m-o-m in August, following a 0.6 percent m-o-m increase in the previous month. This represented the slowest pace this year.

On the y-o-y basis, Canada’s inflation rate surged 4.1 percent last month, accelerating from 3.7 percent in July. This was the highest rate since March 2003.

Economists had predicted inflation would increase 0.1 percent m-o-m and 3.9 percent y-o-y in August.

According to the report, prices increased in seven of the eight major components in August, with transportation prices (+8.7 percent y-o-y) contributing the most to the all-items gain. At the same time, prices declined for clothing and footwear (-0.2 percent y-o-y).

Meanwhile, the closely watched the Bank of Canada's core index jumped 3.5 percent y-o-y in August, following a 3.3 percent y-o-y climb in July.