Canada's inflation rises to 3.1% – gasoline almost 28% more expensive
Pricey gasoline pushed September inflation above the central bank's target. Core inflation eased, however, and economists see little case for a rate hike on Oct. 28.
Photo: Wladyslaw / Wikimedia Commons, CC BY-SA 3.0 (cropped and resized)
Canada's annual inflation rate rose to 3.1% in September from 3.0% in August, Statistics Canada said on Monday. Economists had expected 3.2%. Gasoline prices were up 27.8% from a year earlier. Excluding gasoline, consumer prices rose 2.2%, after 2.4% in August.
The core measures CPI-trim and CPI-median eased to 1.8% and 1.9% respectively. Grocery prices rose 1.7%, the smallest increase since May 2024. Airfares were up 19.4%, and fuel oil and other fuels 57.8%. Inflation exceeded 5% in all three Maritime provinces, while Ontario had 2.5%.
BMO chief economist Douglas Porter said the data did nothing to advance the case for rate hikes. Bank of Canada Governor Tiff Macklem said at the IMF meetings in Bangkok that the bank was prepared to raise rates if necessary because high energy prices raise the risk of broader inflation. The next rate decision is on Oct. 28.