Canada’s Annual Inflation Rate Rises to 3.1% in September

Canada’s annual inflation rate rose to 3.1 per cent in September, slightly exceeding the Bank of Canada’s upper target limit of 3 per cent. Inflation had remained steady at 3 per cent in August.

According to a report released by Statistics Canada on Monday, higher gasoline and diesel prices were the main contributors to the increase in inflation last month. Food prices also rose, although the pace of growth was slower than in the previous month.

Statistics Canada reported that grocery prices increased by 1.7 per cent year over year in September, down from 2.8 per cent in August. This marked the slowest annual increase in grocery prices since May 2024. It was also the second consecutive month in which grocery price growth remained below the overall inflation rate.

The September inflation report is the last major economic data release before the Bank of Canada announces its next interest rate decision later this month.