Canada Inflation Rate Holds Steady at 3%, Despite Rising Oil Prices

Canada's annual inflation rate held steady at 3% in August, according to data released on Monday. This marks the second consecutive month that inflation has remained above the Bank of Canada's 2% target.

The elevated energy costs continue to put pressure on consumers, with gasoline prices still up sharply from a year earlier despite some relief at the pumps in August. The reading keeps inflation above the Bank of Canada's 2% target and comes as the central bank weighs the competing risks of persistent price pressures and a softer economic outlook.

Ryan Kirkley, CEO & Co-Founder of Global Settlement Network, commented that 'Canada's 3% headline inflation rate will naturally attract attention, but I think the more important story sits underneath that number, because much of the pressure is still coming from energy while the Bank of Canada's preferred core measures remain much closer to target.'