Skip to content

Canada’s inflation rate cools in October to 3.1 per cent, as gas prices drop

Canada's inflation rate cools in October to 3.1 per cent, as gas prices drop

A motorist fuels up a vehicle at a Shell gas station after the price of a litre of regular gasoline reached a new high of $2.40, in Vancouver, on Saturday, October 1, 2022. Canada's competition watchdog says Shell Canada Ltd. has agreed to divest some of its western assets to advance its $100 million deal to buy gas stations from grocery giant Empire Co. Limited. THE CANADIAN PRESS/Darryl Dyck

Canada’s annual inflation rate edged down in October, according to Statistics Canada. (THE CANADIAN PRESS/Darryl Dyck) (The Canadian Press)

Canada’s annual inflation rate slowed in October, increasing 3.1 per cent as gas prices fell.

Analysts had expected annual inflation to cool to 3.2 per cent, according to Reuters, following an increase of 3.8 per cent in September.

Statistics Canada said on Tuesday that the annual deceleration was largely the result of lower gas prices, as Canadians paid 7.8 per cent less for gas compared to last year, due in part to base-year effects. On a monthly basis, gas prices fell 6.4 per cent. Excluding gasoline, the Consumer Price Index (CPI) increased 3.6 per cent in October.

Food prices continued to slow in October, though they still remain well above headline inflation. The cost of food purchased from stores increased 5.4 per cent annually, down from a 5.8 per cent increase in September.

Mortgage costs, rent and grocery costs were the largest contributors to the CPI increase, Statistics Canada said.

On a monthly basis, CPI increased 0.1 per cent in October, following a 0.1 monthly drop in September. Seasonally adjusted, CPI fell 0.1 per cent.

Alicja Siekierska is a senior reporter at Yahoo Finance Canada. Follow her on Twitter @alicjawithaj.

Download the Yahoo Finance app, available for Apple and Android.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to our Magazine, and enjoy exclusive fresh news 24/7