Canadian Inflation Hits 3% as Gas Prices Soar

Canada's annual inflation rate accelerated to 3% in July, surpassing expectations. The growth is largely attributed to increased gasoline prices due to renewed US-Iran tensions and higher costs for travel tours.

The monthly consumer price index rose by 0.5%, mainly driven by a jump in gas prices. This marks the 18th consecutive month that grocery price inflation outpaced the overall CPI, with food purchased from stores increasing by 3.1% in July.

Economists have been watching core inflation measures closely, and these numbers show that both CPI-trim and CPI-median came in at 1.9% and 2%, respectively. As a result, many analysts believe the Bank of Canada will keep its key policy rate unchanged for the remainder of the year.