Inflation held steady at three per cent year-on-year in August, official data showed Monday, as the economy braces for the impact of a deepening trade war with the United States.
Prime Minister Mark Carney broke off trade talks with the United States on Aug. 21, prompting President Donald Trump to slap Canada with new tariffs, which were followed by retaliatory action from both sides.
“Price growth remained high for energy-intensive categories such as air travel but had not spread materially across the broader consumer basket,” Royal Bank of Canada economist Abbey Xu said in a statement.
Canada’s central bank this month left its benchmark interest rate unchanged for the seventh straight time but warned the trade war could impact growth and inflation.
