Canada's Inflation Surges to 3% Amid Rising Gas Prices

Canada's inflation rate rose to 3% in July, according to Statistics Canada. This increase is largely due to higher gasoline prices, which surged by 25.7% year-over-year.

The price of energy was a significant contributor to the rise in inflation, with Canadians paying more for hotels and flights to US cities hosting the FIFA World Cup also adding upward pressure.

RBC Economics analysts don't think this data will prompt the Bank of Canada to raise its overnight rate on September 2. They expect the bank to keep rates unchanged through the remainder of 2026.

Conservative Party leader Pierre Poilievre criticized Prime Minister Mark Carney, saying that Canadians are paying more for food and fuel under his leadership. He accused Carney of planning to impose a 10% per litre gas tax hike after Labour Day.