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August 2026 CPI Holds Steady at 3.0 Percent

By Markets Desk · 2026-09-15 · 2 min read
A wooden shopping cart filled with generic grocery items like bread, milk, and produce
Illustration: Tradingbird

Canada’s annual inflation rate remained unchanged at 3.0 percent in August, matching the July figure. Grocery prices rose at a slower pace than the overall index for the first time since mid-2024.

The Consumer Price Index rose 3.0 percent year over year in August 2026. This matches the 3.0 percent increase recorded in July. The monthly index fell 0.1 percent. Seasonally adjusted, the index rose 0.2 percent for the month.

Gasoline prices rose 22.8 percent year over year in August. This is a slowdown from the 25.7 percent increase in July. The deceleration in fuel costs applied downward pressure on the headline number. Excluding gasoline, the CPI rose 2.4 percent in August. This compares to a 2.2 percent increase in July.

Grocery Inflation Falls Below Headline

Store-bought food prices rose 2.8 percent year over year in August. This is a decline from the 3.1 percent increase in July. Grocery inflation ran below the all-items CPI for the first time since July 2024. Dairy prices led the slowdown, rising just 0.7 percent. Cheese and yogurt drove the deceleration in the dairy category.

Fresh pork prices rose 1.6 percent year over year. Condiments and spices increased by 0.7 percent. Fresh fruit prices climbed 4.7 percent. Despite the monthly slowdown, grocery prices remain 29.0 percent higher than in August 2021.

Travel and Rent Costs Accelerate

Travel tour prices rose 26.1 percent year over year in August. This accelerates sharply from the 15.2 percent increase in July. The rise reflects a base-year effect and higher jet fuel costs. Canadian travel to the United States declined in 2025. That prior decline no longer affects the current twelve-month comparison.

Rent prices increased 2.8 percent year over year in August. This compares to a 2.5 percent rise in July. Manitoba saw the highest increase at 4.3 percent. Ontario rent prices rose by 2.4 percent. These increases offset the slowdown in gasoline costs.

Regional Inflation Patterns Vary

Price growth accelerated in six provinces in August. The Atlantic provinces recorded the highest inflation rates. Prince Edward Island, Newfoundland, and Nova Scotia saw faster price gains. Fuel oil prices rose 43.7 percent year over year in August. This is up from a 29.5 percent increase in July. Fuel oil is a primary heating source in these regions.

Based on reporting by gc.ca, compiled by the Tradingbird desk.

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