Canada's Inflation Surges to 3.0% on Higher Gas Prices

Canadian inflation rose to 3.0% year over year in July, matching expectations and up from June's 2.8%. The increase was largely due to higher gasoline prices, which rebounded following a flare-up in US-Iran tensions.

However, these higher gas prices are likely temporary, as pump prices have already decreased through the first half of August. Other factors, such as travel tours and airfares, also contributed to the acceleration in headline inflation.

The core CPI, which excludes gasoline, rose at a slower pace of 2.1% year over year. The food purchased from stores index decelerated, moderating the faster price growth.