Canadian Inflation Hits 3%, Gasoline Prices Drive Rise

Canada's annual inflation rate accelerated to 3% in July, slightly more than expected. The renewed United States-Iran tensions drove gasoline prices up, while travel tour costs also increased.

The monthly consumer price index rose by 0.5%, driven again by an increase in gasoline costs. This puts the inflation rate at the ceiling of the Bank of Canada's 1% to 3% control range.

Analysts polled by Reuters had projected a 2.9% annual and 0.4% monthly rise in consumer prices, which was met but not exceeded. The core inflation measures CPI-trim and CPI-median came at 1.9% and 2%, respectively, both the same as the prior month.