Canadian inflation up 1.2 percent

Inflation in Canada rose 1.2 percent in August, with prices up in all sectors except clothing and footwear, Statistics Canada reported Friday. The consumer price index gain followed a 1.3 percent increase in July and was led by higher prices for passenger vehicles, gasoline and meat, the agency said. Prices of passenger vehicles rose 2 percent and gasoline prices increased 2.2 percent in August. "Gasoline prices rose 2.2 percent in the 12 months to August, after declining 1.3 percent in July," StatsCan said. While prices in the energy sector rose, natural gas prices fell 13.9 percent in the 12 months to August, continuing a pattern of decreases observed since January 2011, the report said. Within the food sector, which rose 2.2 percent on an annual basis, meat prices jumped 5.7 percent and cereal products rose 4.5 percent, the report said. All elements in the shelter sector increased, led by a 3.4 percent increase in electricity costs and 1.4 rise percent in rent fees. The only major component that decreased on an annual basis was clothing and footwear, which was down 1.2 percent, the report said.