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

Statistics Canada reported that Canada's inflation rate remained steady at 3% in August, despite rising costs in travel and lodging. The agency noted that gasoline prices continued to climb, albeit at a slower rate, with a 22.8% increase compared to the 25.7% rise observed in the prior month. This upward trend was attributed to the ongoing conflict in the Middle East.

Excluding gasoline, consumer prices climbed by 2.4% last month. StatCan revealed that grocery prices rose more gradually than overall inflation for the first time in over two years, with prices increasing by 2.8% year-over-year. However, travel expenses saw a significant uptick, driven by higher fuel surcharges and airlines adapting to the sharp decline in Canadian travel to the United States in 2025. Rent prices also surged by 2.8% year-over-year in August, up from 2.5% in July.