Canadian Inflation Accelerates to 3% Amid Gas Price Surge

The annual rate of inflation in Canada accelerated to 3 per cent in July, according to Statistics Canada.

This increase follows a 2.8 per cent gain in June and marks the Bank of Canada's last look at price data before its next interest rate decision on September 2nd.

The surge in inflation is attributed to renewed hostilities in the Middle East, which drove gas prices higher again after Canadian drivers experienced relief at the pumps in June due to peace talks in the Iran war.

Air transportation prices rose by 12 per cent year over year in July, contributing to the increased inflation rate. The high demand for travel during the FIFA World Cup also played a role in this increase.