Canada's Inflation Rate Holds Steady at 3% in August
Inflation in Canada remained steady at an annualized pace of 3% in August, unchanged from July according to Statistics Canada. The country's inflation rate has been trending around this level for several months now.
The slowdown in gas prices was a significant factor in keeping overall inflation down, but this was offset by higher costs for travel tours and rent. Travel tour prices rose 26.1% year-over-year in August, while rent increased 2.8% compared to July's 2.5% rise.
The Bank of Canada left its trendsetting overnight interest rate unchanged at 2.25%, citing the need to assess the impacts of volatile energy prices and U.S. tariffs on the Canadian economy. The central bank has held interest rates steady for seven consecutive policy meetings.