Gas prices drive Canadian CPI up in August

OTTAWA, Sept. 23 (UPI) -- The year-over-year Consumer Price Index in Canada rose 3.5 percent in August, largely on soaring gasoline prices, Statistics Canada reported Tuesday.

On a monthly basis from July to August, the CPI rose 0.2 percent, the report said.

"The increase in the energy price index accounted for about half of the overall increase in the 12-month variation of the CPI in August," StatsCan said.

During August, gasoline prices rose 26.3 percent from a year earlier. Other energy products such as natural gas, fuel oil and other fuels also increased, leading to an overall energy price jump of 20.2 percent in the 12-month period, the report said.

Rising mortgage costs and prices for energy required for housing also contributed to the 5.3-percent, 12-month advance in the housing price index in August, the report said.

Food prices rose 4.5 percent over the 12 months to August, with prices for bakery and cereal products were up 14.9 percent, the strongest upward pressure in the food sector.

The most significant downward contributor was a 7.3-percent drop in prices to purchase and lease passenger vehicles over the 12 months to August, the agency reported.