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September 16, 2025ANALYSIS OF CONSUMER PRICE INDEX FOR AUGUST 2025 Please note that the removal of the consumer carbon price on April 1, 2025 has affected energy prices, with all provinces (except Québec) also removing provincial consumer carbon prices. While other factors such as global commodity prices will continue to affect Canadian energy prices, it is expected that this policy change will be reflected in year-over-year rates until March 2026.
Nova Scotia’s all items Consumer Price Index (CPI) grew 2.2% year-over-year in August 2025, up 0.6 percentage points from the previous month.
Nationally, consumer prices grew 1.9% year-over-year in August 2025, 0.2 percentage points faster than the July inflation rate. Inflation was highest in Québec and slowest in Prince Edward Island.
The most significant upward contributors (combining price increase as well as share of the consumption basket) to Nova Scotia's 2.2% year-over-year inflation were: rent, mortgage interest cost, purchase and leasing of passenger vehicles, passenger vehicle insurance premiums, and homeowners' replacement cost.
The largest downward year-over-year contributions were from: gasoline, inter-city transportation, fuel oil and other fuels, recreational equipment and services (excluding recreational vehicles), and travel tours.
On a monthly basis, Nova Scotia's all items CPI was unchanged from July 2025 to August 2025. National prices were down 0.1% on average, with price declines reported in six of the ten provinces (Alberta prices were unchanged month-over-month). Québec and Saskatchewan reported the highest monthly inflation rates. Prince Edward Island, Ontario and Manitoba reported the largest declines in monthly inflation.
Major upward contributors to Nova Scotia's monthly consumer prices were: gasoline, clothing accessories/watches/jewellery, rent, traveller accommodation, and household appliances. Major downward contributors were: inter-city transportation, travel tours, purchase and leasing of passenger vehicles, women's clothing, and recreational equipment and services (excluding recreational vehicles).
Energy prices play a significant role in inflation rates. Nova Scotia's energy prices (and overall inflation) are more sensitive to fluctuations in the global price of crude oil. Nova Scotia's energy prices were down 6.7% from August 2024 to August 2025. Year-over-year energy prices were down 8.3% nationally with all provinces reporting decreasing energy prices. Québec reported the slowest year-over-year decrease in energy prices, while Alberta reported the fastest decline.
On a monthly basis, Nova Scotia's energy prices rose 1.2% from July 2025 to August 2025. National energy prices were up 0.8% with all provinces reporting higher prices compared to the previous month. British Columbia reported the fastest monthly increase in energy prices, while Newfoundland and Labrador reported the slowest increase.
In August 2025, gasoline prices were down 13.0% compared to a year ago in Nova Scotia. All provinces reported lower gasoline prices, with Saskatchewan seeing the fastest decline and Manitoba having the slowest year-over-year decrease.
Gasoline prices were up 2.0% from July to August in Nova Scotia and up 1.4% nationally. All provinces reported monthly increases in gasoline prices, led by British Columbia. Ontario saw the smallest monthly increase in gasoline prices.
Nova Scotia's year-over-year fuel oil prices were down 4.1% in August 2025 compared with August 2024. Nationally, the fuel oil and other fuels price index increased 1.1% compared to August 2024, with seven provinces reporting decreases. British Columbia reported the steepest drop in fuel oil prices while Québec saw the fastest increase.
On a monthly basis, Nova Scotia's fuel oil prices were up 0.5%. National fuel oil prices were down 1.0% from July to August, with decreases observed in six of the nine reporting provinces. Newfoundland and Labrador reported the steepest monthly fuel oil price decline, while Manitoba saw the fastest increase.
Food prices increased 3.3% in Nova Scotia year-over-year, just below the national average food price inflation. National food prices grew 3.4% in August 2025. Food prices were up in every province, led by Prince Edward Island.
On a monthly basis, Nova Scotia's food prices decreased 0.1% from July to August. National food prices were unchanged from July to August. The largest monthly food price increases were in Newfoundland and Labrador and Saskatchewan while the largest decline was in Manitoba.
Food and energy prices are heavily influenced by volatile global commodity markets. Nova Scotia's underlying inflation rate excluding food and energy was 3.1% from August 2024 to August 2025, the highest rate among provinces. Nationally, inflation excluding food and energy was 2.4% with year-over-year increases in all provinces. Prince Edward Island reported the slowest growth in inflation excluding food and energy prices.
On a monthly basis, Nova Scotia's prices for all items excluding food and energy were down 0.1% from July to August. Nationally, prices for all items excluding food and energy were down 0.2%, with declines in all provinces except Québec. Prince Edward Island had the largest monthly decline in prices for all items excluding food and energy.
Year-over-year shelter cost inflation was 4.3% in Nova Scotia in August 2025. National shelter prices were up 2.6% with increases in all provinces. Québec had the largest increase in shelter prices, while Prince Edward Island reported the slowest increase.
Monthly shelter costs were up 0.3% in Nova Scotia from July to August. Nationally, shelter costs were up 0.1%, with declines in six provinces. The largest monthly increase was in Québec, with the largest decline in Prince Edward Island.
Among detailed food products with available data, Nova Scotia's year-over-year inflation was fastest for coffee/tea, beef, and preserved fruit. The largest year-over-year price decline was for fats/oils.
In detailed shelter cost components, fuel oil/other fuels and home maintenance/repairs saw the only year-over-year price declines. Prices for all other shelter cost components were up year-over-year, led by water and rent.
Household operations/furnishings costs were up 1.6% overall. The largest year-over-year price increases were for textiles and financial services, while prices fell the most for cleaning products and internet access.
Clothing and footwear prices were up 4.4% year-over-year in August with the fastest price increases in clothing accessories/jewellery and children’s clothing, while the only price declines were in footwear and clothing materials/services.
Health and personal care costs were up 3.6% year-over-year on gains in all sub-components except non-prescribed medicine. Personal care services and health care services reported the largest price increases.
Overall transportation costs were down 1.8% year-over-year in August. Vehicle insurance had the largest increase while gasoline had the largest decline, with no change in vehicle registration prices.
Nova Scotia's overall prices for recreation, education and reading were up 1.8% from August 2024 to August 2025 with the fastest increase for travel services/accommodations, and the fastest declines in recreational equipment/services (excluding RV's) and purchase/operation of recreational vehicles.
Nova Scotia's prices for alcohol, tobacco and recreational cannabis were unchanged year-over-year, with an increase in prices for beer from stores offset by declines in all other categories, led by liquor from stores.
Trends
Since the start of the Bank of Canada's inflation-targeting monetary policy regime, inflation for all items has generally been in the 0-4% range. Periods of above target inflation are typically followed by periods of slow price growth or declines. The most recent acceleration in inflation was the strongest since the inflation-targeting era began, though this inflation has receded with tighter monetary policy and lower commodity prices.
Many of these periods of accelerated and slowed inflation are attributable to volatile commodity prices, especially energy prices. Once the more volatile commodity prices are excluded, inflation in Nova Scotia has largely been below 2% for much of the last 20 years. However, the recent rise in inflation through 2021-2024 spread beyond commodity prices, resulting in the longest period under the Bank of Canada's inflation-targeting regime with Nova Scotia's CPI excluding food and energy above 3%. In August 2025, Nova Scotia's inflation excluding food and energy was 3.1% year-over-year, the highest rate recorded since December 2023.
The Bank of Canada examines 'core' measures of inflation that are intended to remove the effects of volatile components and capture underlying inflation trends that are more connected to capacity in the Canadian economy. Core measures of inflation August also indicate where all items inflation is headed.
Canada's core measures of inflation remained mostly at or below the Bank's target of 2% for over a decade prior to 2021. However, core inflation measures rose in 2022, peaking at over 6% for the CPI-common measure before declining around the beginning of 2023. Core measures of inflation have been rising since the end of 2024.
The Bank of Canada's year-over-year core inflation measures in August 2025 were:
- CPI-common: 2.5% (down from 2.6% the previous month)
- CPI-median: 3.1% (unchanged from the previous month)
- CPI-trim: 3.0% (down from 3.1% the previous month)
The core CPI excluding volatile products and the effects of indirect taxes was up 2.6% (unchanged from the previous month).
Source: Statistics Canada. Table 18-10-0004-01 Consumer Price Index, monthly, not seasonally adjusted; Table 18-10-0256-01 Consumer Price Index (CPI) statistics, measures of core inflation and other related statistics - Bank of Canada definitions
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