Canada’s inflation rate below zero for third consecutive month in August

Canada’s inflation rate below zero

TORONTO — Canada’s annual inflation rate remained firmly in negative territory in August for the third consecutive month as the relatively low cost of gasoline and energy continued to drag the index down.

Statistics Canada said Thursday the annual rate of inflation was a negative 0.8 percent last month. That compares with the July reading of minus 0.9 percent, which was Canada’s lowest inflation rate in 56 years.

But it appears recent wild swings in prices of key items like gasoline and food are settling down, suggesting that Canada is heading into a period of low but stable inflation.

While gasoline prices continued to drive the overall price index down, they were only 21.2 percent lower in August on a year-over-year basis, as opposed to the 28.3 percent differential of July.