Canadian Inflation Ticks Up to 3.1% Driven by Energy Costs

The consumer price index held steady in August at the upper limit of the Bank of Canada’s 1% to 3% target window before this recent shift. When gasoline is stripped out of the calculation, inflation actually slowed to 2.2% from the 2.4% recorded in August. Monthly price growth was also modest, rising 0.1%—a softer pace than the 0.2% advance anticipated by analysts.

While headline numbers show a slight increase, the Bank of Canada’s preferred gauges for underlying inflation—the trimmed mean and weighted median—eased to 1.85%. This represents the slowest pace for these core measures in six years, down from 1.95% in August. On a seasonally adjusted basis, the broader consumer price index recorded a 0.4% increase compared to the previous month.