Canada Inflation Holds Steady as Gas Prices Slow

Canada's inflation rate remained steady at 3% in August, according to Statistics Canada's consumer price index report. The August reading was in line with economists' forecasts and may alleviate speculation of a Bank of Canada interest-rate hike next month.

The conflict in the Middle East continued to drive up gasoline prices, but at a slower pace than before, with costs rising 22.8% year-over-year compared to 25.7% in July. Excluding gasoline, consumer prices rose 2.4% last month.

Cheaper clothing and a deceleration in grocery price increases provided some relief for consumers, who still face high energy costs and broad inflation pressures. Overall food affordability remains a challenge for households, with food prices rising 2.8% year-over-year.