Canadian Inflation Holds Firm at 3%

The Canadian headline inflation rate remained steady at 3% in August 2026, meeting market expectations and staying below its post-Iran-war peak of 3.2%. The war in the Middle East has led to a halt in global oil supply, contributing to high energy prices.

Gasoline inflation slowed slightly from 25.7% to 22.8%, while grocery prices rose at a slower rate of 2.8%, down from 3.1% in July and below the headline inflation rate for the first time in over two years.

The Bank of Canada's core inflation rates, which are tracked closely by the central bank, remained near their target. The trimmed-mean core rate and median core rate were both unchanged at 1.9% and 2%, respectively.