The annual rate of inflation slowed sharply in September, falling below the Bank of Canada’s two per cent target, Statistics Canada reported Tuesday.
Annual inflation was 1.6 per cent in the month, down from two per cent in August, thanks largely to continually lower gasoline prices, the agency said.
The yearly price pressures are now at their lowest levels since February 2021, StatCan said.
Price hikes at the grocery store remained steady at 2.4 per cent year-over-year. Despite annual declines for seafood and nuts and seeds, fresh or frozen beef prices were up 9.2 per cent last month, edible fats and oils cost 7.8 per cent more and egg prices rose 5.0 per cent annually.
Prices for airfare were down 4.4 per cent in September and fell 14.3 per cent on a monthly basis, which StatCan noted was typical of seasonal trends heading into the fall.
While rent and higher mortgage costs continue to lift inflation, there was some cooling on the shelter front in September as well. Rents rose 8.2 per cent annually last month, down from 8.9 per cent in August, StatCan said.
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Despite the recent easing in the annual figures, the agency added that, over the past three years, the cost of living has soared and remained elevated. The overall consumer price index is up 12.7 per cent over three years, with rent up 21 per cent and grocery prices up 20.7 per cent over that period.
The Bank of Canada has been lowering its benchmark interest rate in recent months as its focus shifts increasingly towards fears that inflation will dip too far below its two per cent target.
More to come…
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