Canada inflation rate jumps to 4pc on higher gas prices

OTTAWA, Sept 21 (Reuters): Canada's annual inflation rate in August jumped to 4.0 per cent from 3.3 per cent in July on higher gasoline prices, while two of the three core inflation measures also rose, Statistics Canada said on Tuesday.
Analysts polled by Reuters had forecast inflation would hit 3.8 per cent. Month-over-month, the consumer price index rose 0.4 per cent compared to a predicted 0.3 per cent gain.
The August rate, the highest since the 4.4 per cent in April, is well above the Bank of Canada's 2 per cent target. The main driver was a 0.8 per cent year-on-year increase in gasoline prices, which had dropped 12.9 per cent in the 12 months to July.
Two of the Bank of Canada's three core measures of underlying inflation also posted gains. CPI-median edged up to 4.1 per cent from 3.9 per cent in July while CPI-trim rose to 3.9 per cent from 3.6 per cent.