Canada's Inflation Rate Hits 3% Amid Ongoing Iran Conflict

Canada's inflation rate rose to 3% in July, up from 2.8% in June.

The primary factor contributing to higher prices was again gasoline, which grew 25.7% year-over-year due to the ongoing Iran war and the closure of the Strait of Hormuz waterway near Iran.

Travel-related expenses also played a role, with prices for travel tours increasing by 15.2% and air transportation rising 12% year-over-year as airlines pass on higher jet fuel costs to travelers.

The Consumer Price Index (CPI), which measures inflation, rose 0.5% month-over-month in July from June, while on a seasonally adjusted monthly basis, it increased by 0.3%.