Gas and groceries play defining role in topline number
Canada's Consumer Price Index (CPI) was up 2.4 per cent year over year in September, largely due to a slower fall in gasoline prices and a rise in grocery costs, according to Statistics Canada.
After rising by 1.9 per cent in August, CPI was dragged higher by a 4.0 per cent year over year increase in the cost of food purchased from stores, up 0.5 per cent from August. The lowest recent point in grocery inflation was an increase of 1.4 per cent in April of 2024.
Fresh vegetable prices rose by 1.9 per cent annually, after falling in August, and sugar and confectionary costs increased by 9.2 per cent after rising 5.8 per cent in September.
Gasoline prices continued to fall in September dropping by 4.1 per cent, but that fall was at a far slower pace than in August when gasoline dropped by 12.7 per cent. The continued decline has largely been attributed to the removal of the consumer carbon price. CPI excluding gasoline rose by 2.6 per cent, according to StatCan.
Core inflation, which the Bank of Canada tends to preference, has remained above the three per cent mark.
Rent prices also rose slightly, up 4.8 per cent compared to 4.5 per cent in August.
This CPI print is the last official release of inflation data before the Bank of Canada meets on Wednesday October 29.
