Canada's Consumer Inflation Ticks Up to 3% in July

Canadian consumer inflation ticked up to 3% in July, according to Statistics Canada. This increase is more than some economists expected, but not a cause for concern yet.

The agency reports that inflation rose from June's 2.8% to 3% on average last month compared with the previous year. Gas prices were the main driver of this increase, up 25.7% from July 2019. Airfares also contributed to higher transportation costs, increasing by 12% year-over-year.

However, core inflation measures remain around 2%, which is within the Bank of Canada's target range. The central bank aims to keep consumer inflation between 1 and 3% to maintain price stability while allowing the economy to grow.

Economists are cautious about the rising gas prices, but believe that one hotter-than-expected inflation print won't be enough to prompt interest rate changes yet.