Statistics Canada reports that inflation remained at 3% year-over-year for August, as higher travel and housing costs offset slower increases in gasoline and grocery prices. Travel costs surged 26.1%, largely due to rising fuel surcharges and a base-year effect from lower previous year levels. Rent prices increased by 2.8%, up slightly from July’s rate of 2.5%. Economists note that while energy price spikes are contained, there remains a risk of broader inflationary pressure if oil prices stay elevated longer-term.
Written by the local model on 2026-09-14,
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Story summary
In August 2024, Canada's consumer price index (CPI) remained steady at 3% year-over-year, as reported by Statistics Canada. Despite easing food and gas prices, travel and shelter costs increased, keeping overall inflation unchanged from the previous month. Gasoline costs rose but slowed to 22.8% compared to a peak of 25.7% in July, attributed partly to ongoing conflicts in the Middle East. Core consumer prices (excluding volatile items like gas) climbed by 2.4%, up slightly from 2.2% in July. Economists noted that while energy costs have not yet significantly impacted broader inflation pressures, future spikes—such as anticipated 5% increases in September—could lead to higher overall inflation rates.
Written for “Canadian Inflation Rates Stable” on 2026-09-14,
grounded in this article and the 1 other(s) covering the same event.
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Consumer inflation held steady at three per cent last month compared to a year earlier as higher rent and travel costs offset a slowdown in rising prices for gas and groceries.
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costs → hold → gas
Statistics Canada says the annual rate of inflation, as measured by the consumer price index (CPI), was unchanged from July.
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rate → say → July
The agency says gasoline costs continued to increase in August but at a slower pace, with prices up 22.8 per cent compared with 25.7 per cent a month earlier, as the conflict in the Middle East continued to weigh on prices.
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conflict → say → prices
Excluding gasoline, core consumer prices rose 2.4 per cent last month compared to a year earlier, up from 2.2 per cent in July.
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prices → exclude → July
Some economists note the recent oil and gas price spikes appear to be contained, at least for now.
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spikes → note → ?
“Headline inflation remained elevated in August, but core measures continued to show only limited evidence that high energy prices are spilling over into wider inflationary pressure,” said CIBC economist Andrew Grantham in a statement.
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Grantham → remain → statement
Abbey Xu, economist at the Royal Bank of Canada, also said, “There continued to be limited evidence that elevated energy costs were generating significant second-round inflation.
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costs → say → inflation
Price growth remained high for energy-intensive categories such as air travel but had not spread materially across the broader consumer basket.”
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growth → remain → basket
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Xu added: “The risk of greater pass-through will rise the longer oil prices remain elevated.”
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prices → get → through
Travel and tour costs surged 26.1 per cent in August from a year earlier, up from a 15.2 per cent increase in July, and Statistics Canada says rising fuel surcharges amid higher prices for jet fuel was one of the main reasons for this.
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surcharges → surge → this
One of the other reasons for this sharp increase in travel and tour costs was what the agency says was a “base-year effect” when comparing to a year earlier.
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agency → say → costs
That’s because prices for flights and tours were significantly higher last month than they were 12 months before, when there was a notable decline in Canadian travel to the United States.
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they → ’ → States
Housing costs were another hot spot for inflation last month, with rent prices increasing 2.8 per cent year-over-year in August, up from 2.5 per cent in July.
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prices → increase → July
Grocery prices continued to rise by 2.8 per cent last month compared to a year earlier, down from 3.1 per cent in July.
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prices → continue → July
August also marked the first time since July 2024 that retail food costs increased at a slower pace than the overall inflation reading, and Statistics Canada says grocery price growth increased at a slower pace than all the other categories in the August CPI report.
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growth → mark → report
Dairy products like cheese and yogurt saw price growth decelerate the most in the grocery basket, rising 0.7 per cent year-over-year in August compared with a 3.1 per cent increase in July.
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growth → see → July
The agency also notes that although overall food price growth cooled off in August, food prices have increased 29 per cent since August 2021.
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prices → note → August
