Canada’s inflation rate eases to 2.2 percent in October as fuel and food costs decline

Canada’s inflation rate slowed to 2.2 percent in October, with Statistics Canada reporting that lower gasoline and grocery prices played a leading role in easing overall consumer costs. The agency says fuel prices dropped more sharply than in September as retailers shifted to less expensive winter fuel blends.

Grocery prices also moved downward, falling 0.6 percent from the previous month. Statistics Canada notes that this was the most significant month to month decline in more than five years, offering some relief to households facing persistent affordability pressures. Annual food inflation also moderated, as rising chicken prices were balanced by lower costs for prepared foods and fresh vegetables.

The overall inflation reading came in slightly higher than economists had anticipated but still showed a slowdown from September’s 2.4 percent annual rate. Analysts say the latest figures may influence expectations around the Bank of Canada’s next interest rate decision, particularly as families in British Columbia and Alberta continue to cope with higher housing and transportation costs.

Statistics Canada also reported a rare increase in cellphone service prices. Wireless costs rose 7.7 percent in October, marking the first annual jump in that category since April 2023 and contributing to some of the upward pressure that kept inflation from falling further.