Canada's inflation rate rose to 1.9% in August, according to a report from Statistics Canada. This increase comes just ahead of the Bank of Canada's upcoming interest rate decision scheduled for Wednesday. Economists had anticipated a slightly higher inflation rate of 2%, up from 1.7% in July.

The Consumer Price Index (CPI) measures the change in prices for consumer goods and services over time. The CPI is a crucial tool for economists, policymakers, and central banks, including the Bank of Canada, as it helps track economic trends and inform decisions.

The August inflation figure of 1.9% remains within the Bank of Canada's target range for consumer price growth, which is set between 1% and 3%. Factors such as tariff policies have contributed to rising costs for certain products and services, which can influence inflation rates.

As the Bank of Canada prepares for its interest rate meeting, the latest inflation data will be a key consideration in their discussions. The central bank aims to maintain stable prices while supporting economic growth.