Canadian Inflation Rate Meets Expectations, But Rate Hike Chances Diminish
The Canadian inflation rate for August 2026 came in at 3.0% year-over-year, matching expectations.
However, a slight decrease in gasoline prices due to a federal tax holiday has tempered expectations of a Bank of Canada interest rate hike.
The Canadian dollar dropped on the release as the market sees a diminished chance of a rate hike in October.