Canada's Inflation Rate Holds Steady at Three Per Cent

Economists believe that Canada's inflation rate held steady at three per cent in August as oil prices dropped. According to Reuters, a poll of economists expects this figure to be confirmed by Statistics Canada on Monday. Tu Nguyen, an economist at RSM Canada, said that the country is still seeing inflationary pressure from gasoline prices and energy costs.

However, Nguyen noted that the recent escalation of hostilities in Iran may impact oil prices again. 'The longer that goes on, the more it sort of spreads throughout the economy because everything we buy has to go through some transportation channel,' she said. 'If gasoline prices are higher, electricity prices are high, then everything gets more expensive.'

In related news, Statistics Canada released data showing a decline in household debt-to-income ratio in Q2. The agency reported that households held about $1.76 in credit market debt for every dollar of household disposable income.