| 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. |
| 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. |
| On a monthly basis, the CPI fell 0.4% in September, after a 0.2% decline in August. Both the monthly and yearly movements in September were led by lower prices for gasoline. On a seasonally adjusted monthly basis, the CPI was unchanged at 0.0% in September. |
| Gasoline prices fall |
| 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. |
| Every month, 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. |
| Similarly, prices for fuel oil and other fuels fell 22.0% year over year in September, after decreasing 10.2% in August. |
| Prices for rent increase at a slower pace |
| Rent prices increased at a slower pace in September, rising 8.2% year over year, following an 8.9% gain in August. Rent price growth slowed the most in Newfoundland and Labrador (+5.1%), New Brunswick (+10.1%) and British Columbia (+7.3%). |
| Consumers pay less for air transportation. |
| Consumers paid less on a year-over-year basis for air transportation (-4.4%) in September. Month over month, prices for air transportation fell 14.3%. This price movement is seasonally typical, as September coincides with the end of the summer travel period. |
| Canadians continue to face higher prices at the grocery store. |
| 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%). |
| Additionally, prices for food purchased from restaurants rose at a slightly faster pace in September (+3.5%) compared with August (+3.4%). |
| For the full document click the link below: |
| Canada: Consumer Price Index, September 2024 |
