Statistics Canada says country’s inflation rate rose 4% in August

A new report from Statistics Canada says higher gas prices caused the country’s inflation rate to reach four per cent in August, making it the second month in a row inflation has risen.

The consumer price index report released Tuesday shows the annual rate rose from 3.3 per cent in July.

Economists expected this rise in inflation and anticipate slower progress on getting price growth down over the next few months.

However, on a monthly basis, prices rose at a slower pace in August in comparison to July. Experts say this is largely due to lower prices for travel tours and air transportation.

Grocery prices are also increasing at a slower annual pace.

READ MORE: Trudeau announces new measures to deal with housing, grocery prices

They rose 6.9 per cent from a year ago compared with a reading of 8.5 per cent last month.

Higher grocery prices have been a major issue for Canadians, especially those with lower incomes who spend a larger amount of their money on food.

Industry Minister Francois-Philippe Champagne met with the top executives of Canada’s major grocery chains on Monday.

Champagne discussed measures to stabilize prices during the meeting and says the grocers agreed to work with the federal government.

However, few details were provided on how prices could be stabilized.

READ MORE: Bank of Canada says key interest rate remains 5% amid weakening economy