Canada's Inflation Rate Drops to Three-Year Low, Reaching Central Bank's Target

In August, Canada's annual inflation rate dropped to 2.0%, reaching the central bank's target and marking a three-year low, partly due to lower gasoline prices. This decrease from 2.5% in July was below the expected 2.1% increase. Monthly prices fell 0.2%, contrary to the forecast of no change, though seasonally adjusted CPI rose 0.1%. The Bank of Canada's preferred inflation measures advanced 2.35% year-over-year, the lowest since March 2021, cooling from 2.55% the previous month.