Canada's Inflation Rate Remains Steady at 3% Amid Firm Crude Prices

Canada's annual inflation growth rate remained at 3% in August, matching last month's figure, as crude oil prices continued to stay firm. The Bank of Canada has warned that it will not hesitate to increase interest rates multiple times if inflation stays high.

The consumer price index (CPI) data showed that gasoline prices eased slightly in August but still increased at an annual rate of 22.8%, down from a 25.7% rise in July. Food prices, which have been accelerating faster than the headline inflation since July, eased slightly and registered an annual growth rate of 2.8%, the first time in 14 months that food prices fell below the 3% mark.

The data also showed that shelter costs, including rents and mortgage interest costs, increased slightly to 1.5% in August from 1.3% in July. Prices for tours and travel rose 26.1%, another main contributor to the upside inflation after gasoline and food, due to a base year effect.