Canada’s September inflation rises to 3.1 per cent as gasoline accelerates
Canada’s annual inflation rate rose to 3.1 per cent in September from 3 per cent in August. Gasoline prices increased faster, while grocery inflation slowed and shelter inflation rose. The official measurement released on 19 October adds fresh price data before the Bank of Canada’s scheduled 28 October interest-rate announcement; core measures eased slightly on a monthly basis.
Economics & Markets··Evening
Annual consumer inflation reaches 3.1 per cent
Canada’s annual consumer inflation rose to 3.1 per cent in September from three per cent in August. Statistics Canada, the national statistical agency, released the measurement on Monday. The increase came as gasoline prices accelerated again during the month.[1], [2]
Gasoline cost 27.8 per cent more than a year earlier, compared with a 22.8 per cent annual increase in August. The agency attributed the pressure to the Middle East conflict, which had pushed benchmark oil prices to their highest level since May. Cheaper winter gasoline blends provided some relief.[1]
Grocery inflation slows while shelter rises faster
Annual grocery inflation slowed to 1.7 per cent from 2.8 per cent, its smallest increase since May 2024. Cheaper fresh vegetables and lower sugar and confectionery prices helped bring the rate down. Grocery prices nevertheless stood 33.0 per cent above September 2020. Shelter costs rose 1.8 per cent from a year earlier, compared with 1.5 per cent in August.[1]
Core measures ease before the scheduled rate announcement
Core inflation measures, which exclude extreme price movements, eased slightly on a monthly basis. The Bank of Canada closely watches these measures and has its next interest-rate announcement scheduled for 28 October. Before the release, a Bloomberg survey of 12 economists had forecast an annual consumer-price increase of 3.18 per cent. The published September result was lower than that forecast.[1]
