Statistics Canada said headline CPI held at 3.0% YoY in August, in line with
expectations, as gasoline retail prices rose 22.8% YoY versus 25.7% in July. CPI
fell 0.1% MoM, matching the median economist forecast. Slower gasoline inflation
was offset by higher travel and rents. The Bank of Canada has flagged growing
inflationary risk from a possible Iran war; Governor Macklem warned a prolonged
Middle East conflict would raise the odds that energy price rises transmit to
broader inflation and said elevated energy costs are a greater concern than
renewed US trade tensions.
