Canada's Inflation Rate Climbs to Three Percent Amid Gas and Travel Price Hikes

Canada's annual inflation rate rose to three percent in July as gasoline and travel prices increased, Statistics Canada said Monday. The agency reported that the Consumer Price Index was up from a 2.8 per cent year-over-year gain in June.

Prices rose 0.5 per cent on a monthly basis in July, while the seasonally adjusted monthly increase was 0.3 per cent. The all-items CPI excluding gasoline rose 2.2 per cent for the third consecutive month.

Gasoline prices were up 25.7 per cent year over year in July, compared with a 20.5 per cent increase in June. Statistics Canada said the conflict in the Middle East contributed to the acceleration in gasoline prices, citing the blockade of the Strait of Hormuz and partial closure of Red Sea shipping routes.

Travel tours rose 15.2 per cent year over year in July, accelerating from 6.8 per cent in June. The agency said higher prices for hotels and flights to US destination cities contributed to the increase, coinciding with World Cup matches.