Grocery price inflation slowed in August, though prices remained high, Statistics Canada reported on Tuesday, with slower price growth for fruit, cereal and chicken contributing to the trend.

Food prices rose 6.9 per cent year-over-year in August, compared with an 8.5 per cent increase in July, the federal agency said in its monthly inflation report.

Grocery prices were down on a monthly basis, dropping 0.4 per cent in August, the report added.

The grocery price figure is still higher than the four per cent rise in the year-over-year Consumer Price Index for August, with headline inflation driven up by higher gasoline prices, Statistics Canada said.

Fresh fruit prices rose 0.2 per cent, cereal prices rose 9.8 per cent and the cost of fresh or frozen chicken rose 8.9, all slower year-over-year paces than those recorded in July, contributing to the deceleration in food prices.

Meanwhile, prices were higher for fresh or frozen beef, coffee and tea and sugar and confectionary products, the report said.