Inflation fell within the Bank of Canada's target range in August as it slowed to two per cent from the year before.
Statistics Canada's Consumer Price Index Report for August said inflation grew at its slowest pace since February 2021, down from 2.5 per cent in July.
Consumers enjoyed lower prices on gasoline, air transportation, travel tours, clothing, and footwear last month, helping to push inflation down.
The cost of filling up the tank at the gas station fell 5.1 per cent after climbing 1.9 per cent in July, the third monthly decline in four months. The price of crude oil fell in the U.S., and demand slowed in China.
Without gasoline, inflation was 2.2 per cent in August.
At the grocery store, inflation on food prices also slowed to 2.4 per cent after rising 2.1 per cent the month before.
Steep discounts at back-to-school sales accounted for a 6 per cent drop in the cost of clothing and footwear. Statistics Canada said not since 1971 have prices dropped as low. Greater demand for those items typically drives the cost up.
Inflation slowed to 18.8 per cent on mortgage interest costs, down for the 12th consecutive month after peaking one year ago at 30.9 per cent. Those expenses were the biggest contributor to inflation in August.
Electricity costs also fell 1.7 per cent compared to July.
Statistics Canada will release the Consumer Price Index report for September on October 15.