Canada's annual inflation rate stayed at 3% in August, according to Statistics Canada, despite easing gas and food costs due to rising travel and shelter expenses. Economists anticipate higher September inflation driven by escalating crude oil prices, with Bank of Montreal’s Benjamin Reitzes predicting a possible increase in the consumer price index. The report suggests limited current evidence of broader economic impact from energy cost hikes but warns of future risks if oil prices remain high.
Written by the local model on 2026-09-14,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
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.
Why this leaning score
This article does not take a side on a contested political
question, so it has no leaning score. That is an
answer rather than a gap: a match report or a rescue can be warmly
or critically written without being left or right, and scoring it
anyway is how approval of a subject gets recorded as a political
position.
No political leaning scored for article 9104 · logged 2026-09-14
Canada's inflation holds firm at 3% in August as travel, shelter costs rise
asserted
costs → hold → August
Economists expect soaring gas prices to hit in September
asserted
prices → expect → September
Canada's annual inflation rate held firm at three per cent in August, Statistics Canada said Monday, as gasoline prices and food costs eased slightly last month, while prices for tours and travel rose.
asserted
prices → hold → tours
Shelter costs, like rents and mortgage payments, also edged higher in August, the agency said.
asserted
agency → edge → August
On a monthly basis, consumer prices fell 0.1 per cent in August.
asserted
prices → fall → August
A Reuters poll of economists last month expected annual inflation held at three per cent, according to LSEG Data & Analytics.
uncertain
inflation → expect → Data
Monday's consumer price index data predates a recent run-up in crude oil prices driven by an intensifying war in the Middle East.
asserted
data → predate → East
According to pump price data from Kalibrate, the average price for regular grade gasoline nationwide has increased about 21 per cent year-over-year as of Friday.
uncertain
price → accord → Friday
Bank of Montreal economist Benjamin Reitzes said he expects gas prices to fuel hotter inflation in September.
asserted
prices → say → September
"Unfortunately, gasoline is on pace to rise at least five per cent in September which, if realized, would likely mean an acceleration in headline CPI," he wrote in a research note on Monday.
asserted
he → rise → Monday
However, RBC economist Abbey Xu says there is limited evidence so far that higher energy costs are driving prices higher elsewhere in the economy.
asserted
costs → say → economy
"Price growth remained high for energy-intensive categories such as air travel, but had not spread materially across the broader consumer basket," she wrote in research published Monday.
asserted
she → remain → research
"The risk of greater pass-through will rise the longer oil prices remain elevated.
asserted
prices → rise → through
Looking at the August data, Reitzes said a 0.2 per cent monthly dip in food prices, driven by cheaper fresh fruit and vegetables, was a surprise.
asserted
dip → look → fruit
However, he expects higher fuel costs will put a damper on more affordable groceries.
asserted
costs → expect → groceries
"With the surge in energy prices, and diesel in particular, food will likely face upward pressure in the coming months," he wrote.
asserted
he → face → months
Both Reitzes and Xu said Monday's data from Statistics Canada reinforces their expectations for the Bank of Canada to remain on hold in the near future.
asserted
Bank → say → future
"[There's] nothing here to push the BoC closer to a rate hike, which should tame market speculation around a potential move in October," Reitzes wrote.
asserted
Reitzes → be → October
