Canada's Inflation Holds Steady Amid Escalating Trade Tensions
Canada's annual inflation rate remained steady at 3% in August, according to government statistics released on Monday. This stability comes despite concerns over an escalating trade war with the United States.
Prime Minister Mark Carney announced that Canada would break off trade talks with the US after President Donald Trump introduced new tariffs on Canadian goods. In response, both countries have imposed retaliatory measures.
Abby Ju, an economist at the Royal Bank of Canada, noted that price increases were mainly concentrated in energy-intensive categories such as air travel. However, these increases did not spread significantly across the broader consumer group.
The Canadian central bank kept its key interest rate unchanged for the seventh consecutive month but warned that the trade war could impact growth and inflation.