Canada August CPI Holds at 3% as Gasoline Costs Stay Elevated and Food Prices Cool

Canada's annual inflation rate held steady at 3.0% in August, matching both the July reading and economist forecasts, Statistics Canada reported Monday. On a monthly basis, consumer prices slipped 0.1% in August.

Gasoline remained a key driver, with pump prices rising 22.8% year over year, though that pace eased from the 25.7% annual gain recorded in July as crude oil hovered near US$100 per barrel. Higher costs for travel tours and rent also kept inflation elevated, while food prices provided only moderate relief after cooling slightly. The Bank of Canada, which held its key policy rate unchanged at 2.25% earlier this month, will receive the next CPI reading as an additional data point before its next rate decision.