Canada's inflation rate decreased to two per cent in August, Statistics Canada reported on Tuesday, finally hitting the Bank of Canada's target in its long campaign to cool price growth.

Canadian inflation matched the central bank’s target last month for the first time in more than three years, smoothing the road for further cuts in interest rates.

Some Bank of Canada officials are increasingly worried about downside risks to inflation as they decide how to set interest rates, while others see them as more balanced.