Canada's August inflation rate remains steady at 3%, gasoline up 22.8% year-on-year

Data shows that Canada’s annual inflation rate in August remained at 3%, unchanged from the previous month, as strong crude oil prices impacted gasoline costs, while food prices saw only a modest decline. Given that this month’s benchmark Brent crude oil price broke through $100 per barrel, and with US President Trump’s newly implemented 50% tariffs as well as Canada’s retaliatory measures expected to affect overall monthly costs, the consumer price index data for next month may strengthen further. According to the report, gasoline prices saw a slight decrease in August but were still up 22.8% year-on-year, a deceleration compared to July’s 25.7% increase. Since July, food prices have been rising faster than overall inflation, but in August, food prices edged down slightly with a year-on-year growth rate of 2.8%. This marks the first time in 14 months that food price growth has fallen below 3%. Last month, the Bank of Canada stated that if inflation remains elevated and impacts key core measures, it would not hesitate to raise interest rates multiple times.