Inflation stayed at 3% in August as travel costs soared, says StatCan

Statistics Canada reported that Canada's annual inflation rate remained steady at three percent in August, despite rising travel and rental costs. The agency noted that while gas prices continued to climb, the pace of increase slowed down. Gasoline costs rose by 22.8 percent compared to the previous month, but this was a less pronounced increase from the 25.7 percent rise in the prior month, as the ongoing Middle East conflict continued to affect prices.

Excluding gasoline, consumer prices saw a 2.4 percent increase last month. Notably, grocery prices increased at a slower rate than overall inflation for the first time in over two years, with a 2.8 percent rise year-over-year. However, travel costs saw a notable rise due to increased fuel surcharges and airlines adjusting to the significant drop in travel to the United States in 2025. Rent prices also climbed by 2.8 percent year-over-year in August, up from 2.5 percent in July.