Canada's inflation holds at 3.0% in August; excluding gasoline it rises to 2.4%

Statistics Canada published the August consumer price index on Monday 14 September 2026. The headline rate was unchanged, but the mix underneath it shifted.

The figures

• All-items CPI: up 3.0% on a year earlier, matching July
• CPI excluding gasoline: up 2.4%, after 2.2% in July
• Gasoline: up 22.8% on the year, after 25.7% in July
• Rent: up 2.8%, after 2.5% in July
• Food purchased from stores: up 2.8%, after 3.1% in July
• On the month: the CPI fell 0.1%, and rose 0.2% on a seasonally adjusted basis

Statistics Canada said slower growth in gasoline prices was offset by higher prices for travel tours and rent. Prices rose faster in six provinces than in July, and the Atlantic provinces had the highest inflation rates.

Why the figure excluding gasoline matters

Energy prices have been driven by the conflict in the Middle East: Brent crude has traded above $100 a barrel since early September (report). Stripping gasoline out gives a view of price pressure elsewhere in the economy, and that measure rose from 2.2% to 2.4%. The difference between headline and core measures is explained in CPI inflation explained.

The Bank of Canada

The Bank of Canada kept its policy rate at 2.25% on 2 September, pointing to uncertainty from the Middle East conflict and the breakdown of trade talks with the United States (report). The economy lost 42,000 jobs in August (report), so the bank faces inflation above its 2% target at the same time as a weaker job market.

For USD/CAD traders

The US Federal Reserve announces its decision on 16 September (what to watch), so USD/CAD has major news on both sides this week. Oil is the other big influence on the Canadian dollar (oil prices and the Canadian dollar).