OTTAWA — MPs returned to the House of Commons earlier this month to confront an old problem — inflation — which is now being driven by new forces.

Many consumers are still reeling from the decades-high inflation levels seen in the post-pandemic recovery period, when prices for housing, fuel and groceries all surged.

But the factors shaping inflation today are different from the ones in play when the lockdowns ended, and MPs and the Bank of Canada are now grappling with the impact of tariffs, taxes and government spending on the cost of living.

Here’s what you need to know about the state of inflation in Canada.

Where does inflation stand today?

Statistics Canada says the annual rate of inflation came in at 1.9 per cent in August, up from 1.7 per cent in July.

The Bank of Canada is re

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