Ottawa, Sep 21 (IANS): Canada's Consumer Price Index (CPI) rose 7 per cent on a year-over-year basis in August, down from a 7.6 per cent gain in July, the national statistical agency announced.

In its announcement, Statistics Canada on Tuesday said that this was the second consecutive monthly slowdown in the year-over-year price growth and was largely driven by lower gasoline prices in August compared with July, Xinhua news agency reported.

It added that excluding fuel, prices rose 6.3 per cent year over year in August, following a 6.6 per cent increase in July.

On a monthly basis, the CPI fell 0.3 per cent in August, the largest monthly decline since the early months of the Covid-19 pandemic.

On a seasonally adjusted monthly basis, the CPI was up 0.1 per cent, the smallest gain since December 2020, the statistical agency said.

According to Statistics Canada, price growth for goods and services both slowed on a year-over-year basis in August.

As non-durable goods decelerated due to lower prices at the pump, services associated with travel and shelter services contributed the most to the slow down in service prices.

Prices for durable goods, such as passenger vehicles and appliances, also grew at a slower rate in August.

In August, the average hourly wages rose 5.4 per cent on a year-over-year basis, meaning that, on average, prices rose faster than wages.

Although Canadians experienced a decline in purchasing power, the gap was smaller than in July, the statistical agency added.