FX.co ★ Canada’s CPI Slips Into Negative Territory in August, Raising Fresh Disinflation Signals

Canada’s consumer price index (CPI) turned negative on a month-over-month basis in August 2026, marking a sharp reversal from the prior month’s gain and adding a fresh layer of complexity to the country’s inflation outlook.

According to data updated on 14 September 2026, Canada’s CPI fell by 0.1% in August compared with July, on a month-over-month basis. This follows a 0.5% month-over-month increase recorded in July 2026. The figures indicate that price pressures eased notably between July and August, with the pace of change in consumer prices shifting from moderate growth to a slight decline within just one month.

The reported data are based on a month-over-month comparison: the current reading captures the change in prices in August relative to July, while the previous figure reflects the change in July relative to June. Investors and policymakers will be watching upcoming releases closely to assess whether August’s negative print is a temporary correction or an early sign of more persistent disinflation in Canada’s economy.