Consumer prices fell 0.8% in the 12 months to August 2009, following a 0.9% decline in July, Statistics Canada said Thursday.

The decrease was due primarily to a 12-month drop of 19.1% in prices for energy products, mainly gasoline.

Excluding energy, the Consumer Price Index (CPI) rose 1.4% between August 2008 and August 2009.

But food prices remain well above last year’s levels, although the 4% increase in food costs were lower than the 5% reading in July and 5.5% increase registered in June.

Regionally, the agency says eight provinces saw overall prices decline in August, with only Quebec and Saskatchewan bucking the trend.

On a seasonally adjusted monthly basis, the CPI rose 0.3% from July to August, after declining 0.3% from June to July.

The Bank of Canada’s core index advanced 1.6% over the 12 months to August, following a 1.8% rise in July.

The seasonally adjusted monthly core index edged up 0.1% from July to August, following no growth from June to July.

IE