In August, the Consumer Price Index held at a 3.0% annual rate, unchanged from the figure recorded the previous month. Consumer prices dipped 0.1% on a monthly basis in August, while after seasonal adjustment the index edged up 0.2% from the previous month.
Fuel costs climbed more slowly on an annual basis in August than in July, contributing to a moderation in the overall consumer price index. The Consumer Price Index, stripped of gasoline costs, climbed 2.4% in August, up from a 2.2% gain the previous month. Declining fuel costs on a year-over-year basis during August were counterbalanced by rising expenditures on holiday packages and rental accommodation.
Travel tour prices climbed at an annual rate of 26.1% in August, outpacing the 15.2% recorded in July, a difference attributed in part to base-year effects. Cross-border visitor numbers from Canada to the United States fell notably throughout 2025, contributing to reduced costs for flights and packaged tours. With that earlier decline no longer weighing on the annual price comparison, the travel tours index faced upward pressure, reinforced by the addition of fuel surcharges tied to rising jet fuel costs. Travel tour prices declined by 2.9% in August on a month-over-month basis.
Petrol costs climbed 22.8% on an annual basis in August, after a 25.7% gain recorded the previous month. Fuel costs held above typical levels in August, even as the annual rate of increase slowed, with ongoing hostilities across the Middle East contributing to upward pressure on prices.
Clothing prices fell 1.1% in August from the same month a year earlier, reversing a 0.9% rise recorded in July. Reductions in menswear prices of 2.3% and children's apparel of 1.9% drove the overall fall, reversing gains of 2.0% and 4.0% respectively recorded the previous month. Prices for women's apparel held flat on an annual basis in August, following a 0.7% drop the previous month, which helped ease the broader downward trend in clothing costs.
Grocery store food prices decelerated further in August, climbing 2.8% on an annual basis, down from the 3.1% recorded the previous month. In August 2026, the rate of food price increases at grocery stores fell below the broader all-items CPI measure for the first time since July 2024.
Dairy products were the primary driver of slowing grocery inflation, with their annual rate easing to 0.7% in August from 3.1% the previous month. Yogurt and cheese were among the primary factors driving the deceleration in dairy pricing. Modest price gains in categories including fresh and frozen pork (up 1.6%), condiments, spices and vinegars (up 0.7%), and fresh fruit (up 4.7%) played a role in easing the annual rate of grocery price growth during August. Grocery costs have risen 29.0% from August 2021, even as the rate of increase slowed over the past month.
Inflation accelerated on an annual basis across six provinces in August relative to the previous month. Of all the country's provinces, those in the Atlantic region recorded the steepest consumer price increases in August, with Prince Edward Island, Newfoundland and Labrador, and Nova Scotia all seeing faster rates of price growth. Heating oil and related energy products recorded an acceleration in annual price growth during August, climbing 43.7% compared with 29.5% in July, adding upward momentum to overall inflation in regions where heating oil remains the predominant domestic fuel.
Nationally, rental costs climbed 2.8% on an annual basis in August, up from a 2.5% rise recorded the previous month. Price increases in Manitoba (4.3 per cent) and Ontario (2.4 per cent) were the primary contributors to the overall uptick.
