Inflation slowed down to 3.8% across the country in September, as reported by Statistics Canada (StatsCan) on Tuesday. This is a drop from the 4% in August and breaks the rising inflation pattern for the previous two months.StatsCan said the inflation rate had a “broad-based” slowdown in September, showing signs of ongoing “price relief” at the grocery store.StatsCan stated in September, Canadians saw grocery store prices increase by 5.8%, less than the 6.9% in August.In September, prices for meat, dairy, vegetables, coffee and tea went up slowly. However, cooking oils, bakery, fish and fruits rose faster.According to StatsCan, prices went up for September mainly because of more expensive mortgages and rents.Gas prices at the pump went up by 7.5% compared to last year. But, they went down slightly compared to August.Canadians paid less for plane tickets as the prices dropped by 21.1% compared to last year.StatsCan said the price decrease happened at the same time airlines started offering more flights over the past year.Canadians noticed prices decreased over the year for durable products such as appliances and furniture.Prices for new cars went up slower in September, due to more cars being available at new car dealerships, said StatsCan.The Bank of Canada’s metrics for looking at price increases slowed down in September.The StatsCan inflation report comes before the Bank of Canada announces any changes to interest rates on October 25.Prices have been steadily rising for the past two months. They increased in July and August after being at 2.8% in June.Andrew Grantham, senior economist at CIBC, said on Tuesday, even though prices are rising more than the Bank of Canada's goal of 2%, the slower increase in September and other signs the economy is calming down should mean the bank does not need to increase interest rates.
Inflation slowed down to 3.8% across the country in September, as reported by Statistics Canada (StatsCan) on Tuesday. This is a drop from the 4% in August and breaks the rising inflation pattern for the previous two months.StatsCan said the inflation rate had a “broad-based” slowdown in September, showing signs of ongoing “price relief” at the grocery store.StatsCan stated in September, Canadians saw grocery store prices increase by 5.8%, less than the 6.9% in August.In September, prices for meat, dairy, vegetables, coffee and tea went up slowly. However, cooking oils, bakery, fish and fruits rose faster.According to StatsCan, prices went up for September mainly because of more expensive mortgages and rents.Gas prices at the pump went up by 7.5% compared to last year. But, they went down slightly compared to August.Canadians paid less for plane tickets as the prices dropped by 21.1% compared to last year.StatsCan said the price decrease happened at the same time airlines started offering more flights over the past year.Canadians noticed prices decreased over the year for durable products such as appliances and furniture.Prices for new cars went up slower in September, due to more cars being available at new car dealerships, said StatsCan.The Bank of Canada’s metrics for looking at price increases slowed down in September.The StatsCan inflation report comes before the Bank of Canada announces any changes to interest rates on October 25.Prices have been steadily rising for the past two months. They increased in July and August after being at 2.8% in June.Andrew Grantham, senior economist at CIBC, said on Tuesday, even though prices are rising more than the Bank of Canada's goal of 2%, the slower increase in September and other signs the economy is calming down should mean the bank does not need to increase interest rates.
