Canada's Inflation Holds Steady at 3.0% as Gas Prices Cool
Canada's inflation rate remained steady at 3.0% in August, despite cheaper gasoline, according to Statistics Canada. The consumer price index (CPI) held firm year-over-year and fell by 0.1% month-over-month, matching market consensus.
The flat headline conceals a tug-of-war between different categories: gasoline inflation cooled from 25.7% to 22.8%, while travel tour prices jumped from 15.2% to 26.1%. Rent inflation also ticked up to 2.8% from 2.5%.
Excluding gasoline, inflation accelerated to 2.4% from 2.2%, indicating that policymakers are less concerned with volatile energy prices and more focused on whether broader price pressures are easing.
The Bank of Canada is likely to keep its attention on 'core' style signals, including rent and mortgage costs, which remain sensitive to a central bank that needs to see more comprehensive cooling, not just cheaper fuel.