The Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in September, down from a 2.0% gain in August. This was the smallest yearly increase since February 2021 (+1.1%). The main contributor to headline deceleration was lower year-over-year prices for gasoline in September (-10.7%) compared with August (-5.1%). The all-items CPI excluding gasoline rose 2.2% in September, matching the increase in August for this measure, reported Statistics Canada on Tuesday.
“Although the rate at which prices are increasing has slowed, price levels remain elevated. Compared with September 2021, the CPI rose 12.7% in September. Canadians continue to feel the impact of higher price levels for day-to-day basics such as rent (+21.0%) and food purchased from stores (+20.7%), which increased during that same 3-year period,” said the federal agency.
ELEVATE
“On a monthly basis, the CPI fell 0.4% in September, after a 0.2% decline in August. Both the monthly and yearly movement in September were led by lower prices for gasoline. On a seasonally adjusted monthly basis, the CPI was unchanged at 0.0% in September.”
Year over year, gasoline prices fell to a greater extent in September (-10.7%) compared with August (-5.1%), putting downward pressure on the all-items CPI, said StatsCan, adding that on a monthly basis, gasoline prices fell 7.1% in September following a 2.6% decline in August. The September decline was driven by lower crude oil prices amid increasing concerns over weaker economic growth, as well as lower costs associated with switching to winter blends.
“Prices for food purchased from stores rose 2.4% in September, the same growth rate as in August. This is the second consecutive month that grocery prices increased at a faster pace than headline inflation. While prices declined on a year-over-year basis for some food items, such as seafood and other marine products (-4.9%), nuts and seeds (-0.9%), and fish (-0.3%), others continued to increase and remained elevated, such as fresh or frozen beef (+9.2%), edible fats and oils (+7.8%) and eggs (+5.0%),” said the report.
“Additionally, prices for food purchased from restaurants rose at a slightly faster pace in September (+3.5%) compared with August (+3.4%).”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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