Canada's Inflation Rate Hits 3% as Gas Prices Surge Amid Global Turmoil

Canada's annual inflation rate rose to 3% in July, up from 2.8% in June, due largely to a surge in gasoline prices amid global energy turmoil.

Gasoline prices increased by 25.7% year-over-year, with Statistics Canada citing ongoing conflict in the Middle East and disruptions to oil shipping routes as key factors.

Economists say the increase is mild enough for the Bank of Canada to remain focused on trade risks rather than broadening price pressures.

The federal government has temporarily suspended its 10-cent-per-litre gasoline tax, along with other fuel levies, until after Labour Day, valued at roughly $2.4 billion in relief.