Canada Inflation Hits 3% Amid Soaring Gas Prices

Canada's inflation rate ticked up to 3% in July, fueled by higher gas prices, according to Statistics Canada. The yearly increase is a significant jump from the previous month, with gasoline prices rising at a 26% pace year-over-year. This surge pushed the overall consumer price index (CPI) growth above the Bank of Canada's target rate of 2%. Despite this, core measures of inflation remained subdued, increasing by just 2.2% excluding gasoline prices.

The monthly inflation rate also saw a 0.5% increase in July, indicating that higher prices are becoming more persistent. The Middle East conflict is partly to blame for the rising gas costs, which have had a knock-on effect on other inflation measures.