For the first time since July 2024, the rising cost of groceries in Canada did not outpace headline inflation.
Statistics Canada released its Consumer Price Index report on Monday.
Canadians spent another 2.8 per cent on groceries last month compared to August 2025. That's compared to a 3.1 per cent increase in July.
The cost of dairy, fresh or frozen pork, condiments, and fresh fruit continued to accelerate, and since August 2021, the cost of groceries has increased 29 per cent.
Headline inflation in Canada in August was 3 per cent, matching July's Consumer Price Index increase.
Without the cost of gasoline, inflation was 2.4 per cent.
The price of gas at the pumps grew another 22.8 per cent in August year over year, after July's 25.7 per cent increase. The conflict in the Middle East continues to keep oil prices elevated.
However, gas was not what elevated inflation last month. Travel tours were, rising 26.1 per cent in August, compared to 15.2 per cent in July. Canadian travel to the U.S. fell significantly in 2025.
Canadians also paid less for clothing. The price of men's clothing dipped 1.1 per cent compared to last August, while the cost of children's clothing fell 2.3 per cent. Women's clothing didn't change.
Rent also increased 2.8 per cent year-over-year, increasing by 2.4 per cent in Ontario.
Elsewhere in the G7 group of nations, the U.S. recorded a 3.4 per cent increase in inflation in August. France's rate was 2.7 per cent, 3.3 per cent for Italy, and Germany's was 2.9 per cent. In Japan, the rate in August was 7.6 per cent.
The United Kingdom has not released its inflation rate for August as of publication. Economists expected it to land around 3.1 or 3.2 per cent.
