Canada’s annual inflation rate rose 2.4% in September, compared with a 1.9% increase in August, driven in part by rising food costs and a slower decline in gasoline prices, Statistics Canada’s consumer price index (CPI) showed Tuesday.
The reading came in slightly above economists’ expectations of 2.2%, suggesting continued price pressure in key consumer categories.
Food prices led the gains, with grocery bills rising 4% year-over-year, up from a 3.5% gain in August. Consumers paid more for fresh vegetables (+1.9% compared with -2% in August) and sugar and confectionery (+9.2% compared with +5.8%), while items like fresh or frozen beef and coffee saw increases due in part to lower supply. Grocery inflation has been trending upward since April, when it hit a low of 1.4%, StatsCan said.
Gasoline prices fell 4.1% year-over-year in September, a smaller decline than August’s 12.7% drop. The slower decrease was largely attributed to a “base-year effect,” as gas prices had plunged in September 2024 amid weaker global oil demand. This year, however, refinery maintenance and supply disruptions in both Canada and the U.S. pushed prices up 1.9% month-over-month.