Economy· August 17, 2026 at 12:48 p.m.
Canada's Annual Inflation Rises to 3% in July Due to Gasoline Price Recovery
Key takeaways
- Canada's annual inflation rate rose to 3% in July
- Gasoline prices were the primary driver of the increase
- The Bank of Canada targets an annual inflation rate of 2%
Canada's annual inflation rate increased to 3% in July, up from June's 2.4%, primarily due to a rebound in gasoline prices. This marks the highest annual inflation rate since January 2019. The increase was slightly above analysts' expectations of a 2.6% rise.
Paragraph 2
The Statistics Canada report showed that gasoline prices rose by 14.7% in July compared to June, contributing significantly to the overall inflation rate. Excluding gasoline, the core inflation rate remained unchanged at 1.9%.
Paragraph 3
'The increase in gasoline prices was a significant factor in the rise in inflation this month,' said Shelley Wolswinkel, a senior economist at TD Economics. 'However, we expect inflation to moderate in the coming months as the impact of the recent surge in oil prices fades.'
Paragraph 4