Canada's August Inflation Rate Holds Steady at 3%

Canada's annual inflation rate held steady at 3% in August, matching last month's figure. The stable reading was largely due to firm crude prices, which continued to support gasoline costs.

However, food prices cooled slightly, posting an annual growth rate of 2.8%, the first time in 14 months they fell below the 3% mark. Dairy products led this deceleration, with prices rising 0.7% annually in August compared to a 3.1% increase in July.

The Bank of Canada has stated that it will not hesitate to raise interest rates if inflation stays high and impacts core measures, which have largely hovered around 2%. The central bank aims to keep inflation within its target range of 1-3%, with the current reading sitting at the upper end of this spectrum.