Canadian Inflation Holds Steady at 3% Amid Contained Underlying Pressures
Canada's inflation rate remained steady at 3% year-over-year in August, according to data from RBC. This stability is a positive sign for the economy, as it suggests that underlying price pressures are still contained.
Energy prices continued to rise, but at a slower pace than in July, with gasoline prices decreasing by 0.9% from the previous month. However, these prices remain 23% above their year-ago levels. Food inflation also ticked lower to 2.8%, its lowest since late 2024.
The Bank of Canada's preferred core measures, CPI-trim and CPI-median, remained close to the 2% target, indicating that inflation is still under control. Measures of inflation breadth were contained, suggesting that strong price growth remains concentrated in a narrow group of categories.