Canada’s inflation rate edged higher in September as rising food prices and a smaller drop in gasoline costs pushed the overall Consumer Price Index slightly upward, highlighting the uneven progress in bringing prices back under control.
The consumer prices rose 2.4 percent from a year earlier, compared with 1.9 percent in August. Excluding gasoline, inflation was 2.6 percent, up from 2.4 percent, suggesting that underlying price pressures remain steady across most sectors.
Gasoline prices were down 4.1 percent in September compared with a year earlier. Last September, fuel prices had already fallen sharply as crude oil costs declined amid global economic uncertainty. This year, refinery maintenance and disruptions in Canada and the United States pushed prices higher by nearly 2 percent monthly, narrowing the year-over-year gap.
Grocery prices continued to climb faster than overall inflation, rising 4.0 percent over the past year compared with 3.5 percent in August. Fresh vegetables turned costlier after several months of decline, up 1.9 percent in September. Sugar and confectionery products increased 9.2 percent, while beef and coffee prices also rose due to lower supply. Food inflation has generally trended upward since April 2024, when it reached its recent low of 1.4 percent.
Prices for travel tours fell 1.3 percent on an annual basis, following a much steeper 9.3 percent decline in August. Clothing and footwear prices slowed their pace of growth, rising just 0.8 percent after a 1.7 percent increase the previous month. Clothing prices dropped 0.3 percent from August, marking the first September decline since 1998.
Tuition fees increased 1.7 percent this year. Prince Edward Island recorded the largest rise at 4.7 percent, while Ontario and Nova Scotia both saw smaller increases of 1.1 percent, in line with provincial tuition freezes.
Overall, consumer prices rose 0.1 percent from August, or 0.4 percent when adjusted for seasonal factors. The data indicate that while inflation remains far below its 2022 peaks, progress toward full stability is uneven. With fuel and food costs still unpredictable, Canadians continue to face stubbornly high prices for basic necessities, and the Bank of Canada is likely to maintain its cautious stance before considering any rate cuts.