Poilievre Blames Carney Government for Cost-of-Living Pressures as Inflation Hits 3%

By Tahani Elghazaly
Published August 18, 2026

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Conservative Leader Pierre Poilievre blamed Prime Minister Mark Carney’s government for continued cost-of-living pressures after Canada’s annual inflation rate reached 3% in July, pointing to higher gasoline, energy and food prices and renewing his call on Ottawa not to restore the federal fuel tax when its temporary suspension ends in September.

In a statement issued by the Conservative Party following the release of the inflation figures, Poilievre said the rate had risen to 3%, describing it as 50% above the Bank of Canada’s 2% target. He also cited a 25.7% year-over-year increase in gasoline prices, a 16.6% rise in energy prices and a 3.1% increase in grocery prices.

The Bank of Canada targets inflation at 2%, but describes that figure as the midpoint of a 1% to 3% target range over the medium term. July’s reading therefore reached the upper end of that range after inflation increased from 2.8% in June to 3% in July.

Statistics Canada data showed energy prices were among the major drivers of the July increase. An analysis by RBC Economics said energy prices rose 16.6% year over year, while gasoline prices increased by roughly 26%, compared with an annual rise of about 20% in June. RBC linked the movement to continued increases in oil prices and transportation disruptions through the Strait of Hormuz amid conflict in the Middle East.

Grocery prices, meanwhile, increased 3.1% from a year earlier in July. However, the pace slowed from 3.9% in June, while overall food inflation eased to 3% from 3.5% the previous month. The data also showed fresh fruit prices were 6.1% higher than a year earlier.

Poilievre argued that higher energy costs eventually feed into the cost of producing and transporting goods. He also pointed to increases in several food categories, including meat, vegetables and fruit, and called on the Carney government to prevent the federal fuel tax from returning and to adopt the Conservative proposal to temporarily remove federal taxes on gasoline until Canada Day 2027.

The federal government suspended the federal fuel tax from April 20 through September 7, 2026, providing relief equivalent to 10 cents per litre of gasoline and four cents per litre of diesel. Under the current government plan, the tax is scheduled to return to its previous rates on September 8 unless Ottawa announces another extension. The government estimated the temporary relief would be worth more than $2.4 billion in 2026–27.

Measures of underlying inflation, which are used to assess price trends while reducing the effect of some of the most volatile components, remained close to 2%. According to RBC Economics, CPI-trim was 1.9% and CPI-median was 2% in July, while inflation excluding food and energy stood at 1.9%. RBC said the July figures so far showed limited evidence that higher energy costs were spreading broadly across other components of the consumer price index.

Poilievre’s comments come as the federal government approaches a decision on the future of the temporary fuel-tax relief before September 8, while upcoming inflation data will offer further indications of whether higher energy and food costs are beginning to affect broader inflation pressures in Canada.