Canada Core Inflation Holds at 2.6% in August Below Expectations

Canada’s annual core inflation, which strips out eight of the most volatile components including food, energy, and mortgage interest costs, held steady at 2.6% in August 2025, unchanged from July and slightly below market expectations of 2.7%. On a monthly basis, core consumer prices were flat, following a 0.1% increase in July.

The annual core inflation rate in Canada which excludes eight of the most volatile components such as food, energy and mortgage interest costs, fell to 2.2% in March 2025 from an over one-year high of 2.7% in the prior month. This marked the first slowdown in core inflation after three consecutive months of increases. On a monthly basis, core consumer prices rose by 0.1% in March, slowing from a 0.7% increase in the prior month.