Stable Inflation Rate Masks Underlying Pressures in Canada

Canada's inflation rate remained steady at 3.0% year-over-year in August, matching expectations and July's reading.

The unchanged headline figure concealed opposing forces: gasoline inflation slowed from 25.7% to 22.8%, placing downward pressure on CPI, while inflation excluding gasoline accelerated from 2.2% to 2.4%.

Travel-tour inflation surged from 15.2% to 26.1%, partly due to a base-year effect and new fuel surcharges, despite prices falling 2.9% month-on-month.

Rent inflation also accelerated from 2.5% to 2.8%, led by increases in Manitoba and Ontario.