August Inflation Holds at 3.0% with Higher Rent, Travel Costs and Slower Grocery Growth

Canada’s annual inflation rate remained unchanged in August, although consumers saw very different price movements depending on what they were buying.

Statistics Canada said the Consumer Price Index rose 3.0% year over year in August, matching July’s increase. On a monthly basis, the CPI fell 0.1%, while the seasonally adjusted index rose 0.2%.

Excluding gasoline, inflation increased to 2.4% from 2.2% in July.

Gasoline still costly, but rising more slowly

Gasoline prices were 22.8% higher than a year earlier in August. That was still a sizable increase, but it marked a slowdown from the 25.7% rise recorded in July.

Statistics Canada said gasoline prices remained elevated as the conflict in the Middle East continued through August.

Without gasoline, inflation actually picked up. The CPI excluding gasoline rose 2.4% year over year, compared with 2.2% in July.

Travel tour prices surge

Travel tours stood out among the categories pushing inflation higher.

Prices jumped 26.1% from August 2025, accelerating sharply from a 15.2% annual increase in July.

Part of that change came from what Statistics Canada described as a “base-year effect.” Canadian travel to the United States had fallen sharply in 2025, weighing on airfare and travel tour prices at the time. That earlier decline is no longer part of the 12-month comparison.

Higher jet fuel prices and new fuel surcharges also added pressure.

The annual increase does not mean prices climbed in August itself. Compared with July, travel tour prices actually fell 2.9%.

Grocery inflation cools

There was some relief at the grocery store. Food purchased from stores rose 2.8% year over year, down from 3.1% in July.

It was the “first time since July 2024” that grocery price growth came in below the overall inflation rate, Statistics Canada said.

Dairy prices rose only 0.7%, after increasing 3.1% in July. Cheese and yogurt were major reasons for that slowdown.

Fresh or frozen pork increased 1.6%, condiments, spices and vinegars rose 0.7%, while fresh fruit prices were up 4.7%.

Still, the longer-term increase remains significant. Grocery prices are 29.0% higher than they were in August 2021.

Clothing gets cheaper while rent rises

Clothing prices fell 1.1% from a year earlier. Men’s clothing declined 2.3% and children’s clothing dropped 1.9%, while women’s clothing was unchanged.

Rent moved the other way, rising 2.8% nationally after a 2.5% increase in July. Manitoba posted a 4.3% increase, while Ontario recorded a 2.4% rise.

Inflation across provinces

Inflation accelerated in six provinces in August. Atlantic provinces remained the highest, helped by a 43.7% rise in fuel oil costs. Prince Edward Island rose from 4.0% to 4.4%, while Newfoundland and Labrador edged up to 4.3% and Nova Scotia to 5.1%.

Ontario increased from 2.0% to 2.4%, Manitoba from 4.2% to 4.4%, and British Columbia from 2.9% to 3.0%. New Brunswick held at 4.6%, while inflation slowed in Quebec, Saskatchewan and Alberta. A

Consumer Price Index, August 2026

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