Canadian Inflation Holds Steady as Trade War Intensifies

Canada's inflation rate remained steady at 3% in August, according to official data released on Monday. This stability comes as the country prepares for the economic impact of a deepening trade war with the United States.

Prime Minister Mark Carney ended trade talks with the US on August 21, prompting President Donald Trump to impose new tariffs on Canada. The US then followed up with retaliatory measures.

Royal Bank of Canada economist Abbey Xu noted that price growth has been high for energy-intensive categories like air travel, but this increase has not spread across the broader consumer basket.