Canada’s inflation rate slowed during September
In September, Canada’s inflation rate landed at 1.6% (Statistics Canada). This came after the Bank of Canada reached its goal of 2% in August.
Statistics Canada said these numbers reflect the smallest year-over-year increase to the consumer price index since February 2021 (CBC).
Gas prices also fell by 10.7% on a yearly basis, decreasing inflation in September.
Minus gasoline, the all-items inflation matched August at 2.2%.
Despite this, the cost of rent and groceries remains high, even as inflation has fallen.
Unfortunately, food prices jumped higher than headline inflation.
Prices of seafood, other marine products, nuts and seeds dipped on a yearly basis. However, prices increased for fresh and frozen beef and eggs.
Rent increases slowed in September, climbing 8.2% year-over-year compared to 8.9% in August.
Newfoundland and Labrador, New Brunswick and B.C. saw the slowest growth in rent prices.
“We’re still not convinced the Canadian economy needs an emergency-scale response, but there is little question today’s data will lower the downside risks associated with moving more aggressively,” -Karl Schamotta, Corpay Chief Market Strategist.
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