Inflation Ticks Up to 3% as Gas Prices Surge

Consumer inflation in Canada rose to 3% in July from June's 2.8%, surpassing economists' expectations of a 2.9% increase, according to Statistics Canada.

The main driver behind the rise was gas prices, which have been volatile due to fluctuations in oil prices worldwide amid the Iran war.

A tentative ceasefire agreement between the U.S. and Iran helped calm oil markets in June, but prices rose again after the deal fell apart and fighting resumed.

The Bank of Canada aims to keep inflation within a 1-3% range to maintain price stability while allowing the economy to thrive, with its next opportunity to reassess interest rates coming on September 2.