Canadian Inflation Hits 3% as Gas Prices Surge

Canada's annual inflation rate accelerated to 3% in July, slightly more than expected, as renewed United States-Iran tensions drove gasoline prices higher.

The consumer price index rose by 0.5% on a monthly basis, with the cost of travel tours also increasing due to higher hotel and flight prices to the US, especially cities hosting the football World Cup.

The Bank of Canada's control range is between 1% and 3%, and with core inflation largely hovering around 2%, economists believe the central bank will keep its key policy rate on hold for the rest of the year.