Lates News

Canada's inflation rate held steady at 3% in August, in line with expectations, as gasoline prices rose at a slower pace year-over-year. Despite ongoing Middle East conflicts putting upward pressure on energy costs, Statistics Canada reported Monday that retail gasoline prices in August were 22.8% higher than a year earlier, following a 25.7% increase in July. However, the slowing year-over-year trend in gasoline prices was offset by rising travel and rent prices. On a monthly basis, the consumer price index fell 0.1%, matching the median forecast in a survey of economists. The data showed that underlying price pressures remained contained in August, even as the Bank of Canada grows increasingly concerned about inflation risks stemming from the Iran war. Bank of Canada Governor Macklem warned earlier this month that the longer the Middle East conflict persists, the more likely energy price increases will pass through to prices in other parts of the economy. He said that while renewed trade tensions with the United States have heightened inflation risks, elevated energy prices are the more concerning issue.