Canada's Inflation Hits 3% in July on Gasoline Surge

Canada's inflation rate rose to 3% in July due to a surge in gasoline prices, which increased by 26% compared to last year. This acceleration from June's 21% annual gain pushed up the overall consumer price index for the month.

The Bank of Canada's preferred core gauges averaged 1.95% on a yearly basis, which remains below the central bank's 2% objective. Economists polled by Bloomberg had forecasted a 2.9% annual rate, but the actual figure fell short of this prediction.

Despite the increase in inflation, the core measures remain subdued, with little evidence that energy costs are bleeding into other categories. This gives policymakers room to keep interest rates unchanged for now.