Higher gas prices fueled another increase in inflation in Canada, reaching 4 per cent in August.

Statistics Canada released the figures today, marking the second month in a row in which inflation rose.

Inflation was up from 3.3 per cent in July. Grocery prices rose at a slower annual rate, rising 6.9 per cent over the previous year, but down from the 8.5 per cent increase the previous month.

According to Statistics Canada the inflation rate rose in St. John’s to 4.2 per cent in August, up from 2.9 per cent in July.

For the province as a whole, the cost of living spiked by 3.8 per cent last month compared to 2.5 in July.

The Bank of Canada, which has increased interest rates to cool inflation, decided to hold its key interest rate earlier this month amid growing concerns raised by provincial premiers, including NL’s Andrew Furey.