Canadian Inflation Rate Holds Steady at 3%, Oil Prices Remain a Concern

The inflation rate in Canada held steady at 3% in August, according to Statistics Canada. The agency reported that consumer prices rose 2.4% last month, excluding gasoline costs.

However, oil prices continued to be a major concern for policymakers, as they could 'drive angst among policymakers and concern that it's just a matter of time before we get some spillover into broader inflation.'

The conflict in the Middle East contributed to rising gas prices, which increased by 22.8% year-over-year in August, but at a slower pace than in July.

Excluding gasoline costs, core measures remained around the Bank of Canada's target rate of 2%. The agency also noted that food prices rose more slowly than overall inflation for the first time since July 2024, with dairy products leading the deceleration.