Canada’s annual inflation rate reached 4.1 per cent in August, the fastest pace since March 2003, Statistics Canada said on Wednesday. This was up from 3.7 per cent in July. The increase in the Consumer Price Index (CPI) is the result of both price pressures and the comparison with low price levels in 2020, the agency said. Fuelling much of the rise was higher gasoline and housing prices compared with the same month one year ago. Excluding gasoline prices that rose year-over-year by 32.5 per cent in August, Statistics Canada says the annual inflation figure would have been 3.2 per cent last month. The statistics agency also says homeowner replacement costs, which are related to the price of new homes, rose at an annual rate of 14.3 per cent in August. The pace of housing prices was the fastest yearly increase since September 1987 and marked the fourth consecutive month of double-digit price growth.