Canada Inflation Stable at 3% in August Amid Trade War Concerns
Summary
Canada’s annual inflation held steady at 3% in August as the economy braced for the effects of an escalating trade war with the United States. The central bank kept its key interest rate unchanged for the seventh straight time, warning that the dispute could affect growth and inflation.
Key Points
- Annual inflation in Canada remained stable at 3% in August, according to government statistics released Monday.
- Prime Minister Mark Carney said trade talks with the United States were broken off before President Donald Trump announced new tariffs on Canada.
- Canada and the United States have both responded with retaliatory measures as trade tensions rise.
- The Bank of Canada kept its key interest rate unchanged for the seventh consecutive time and warned of possible effects on growth and inflation.
