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Gas prices drove inflation up to 3% in July as food cost pressures eased

Globe and Mail - Business - 2026-08-17

AI Summary

Inflation in Canada rose to 3% in July, primarily driven by a significant increase in gasoline prices, while food cost pressures eased slightly. Despite this reacceleration, economists suggest the Bank of Canada can maintain its current interest rate due to mild overall inflation and looming trade risks. The central bank's next interest rate decision is on September 2, with no immediate changes expected.

Key takeaways

  • July inflation reached 3%, up from 2.8% in June.
  • Gasoline prices were the main contributor to the inflation increase.
  • Bank of Canada is expected to hold interest rates steady.

What this could mean for homebuyers

Mortgage news can affect fixed rates, variable-rate expectations, affordability, and buyer timing. Use this article as context, then compare today's rates or ask the AI Mortgage Advisor how it applies to your situation.

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