Canada's Inflation Rate Expected to Hold Steady at Three Percent

Statistics Canada is set to release inflation figures for August this morning. The data is expected to show that the annual rate of inflation held steady at three percent last month, according to a poll of economists by LSEG Data & Analytics.

The Bank of Canada has been monitoring the situation closely, as it tries to balance volatile global energy prices and U.S. tariffs that are hampering the economy. The central bank's key policy rate remains unchanged at 2.25 percent, with seven consecutive decisions holding steady in an effort to mitigate these pressures.

RBC economists note that higher energy prices have been a major contributor to inflationary pressure, with crude prices hovering around US$100 per barrel due to the ongoing conflict in Iran. However, there was some relief at the pumps last month compared to earlier this summer.