Canada annual CPI remained 3.0% in August, unchanged from July. Brent crude
trading above $100/bbl and stronger oil-driven pump costs kept inflation
elevated; gasoline fell slightly month-on-month but was still up 22.8% YoY
(July: +25.7%). Food inflation cooled to 2.8% YoY, the first sub‑3% reading in
14 months, after food had been rising faster than headlines since July. U.S.
President Trump’s new 50% tariff and Canada’s retaliatory measures are expected
to add cost pressure through the month and could lift next month’s CPI. The BOC
warned it will not hesitate to raise rates multiple times if inflation remains
high and begins to affect key core measures.
