Canadian Inflation Holds Steady Amid Slowing Gas Prices

Canada's inflation rate remained at 3% in August, matching expectations as gasoline prices rose at a slower annual pace of 22.8%, down from 25.7% in July.

The conflict in the Middle East continues to put upward pressure on energy costs, with Bank of Canada governor Tiff Macklem warning that the longer the conflict lasts, the more likely higher energy prices will feed through to other prices in the economy.

Despite this concern, core measures of inflation remained subdued around 2% target, suggesting underlying price pressures remain under control.