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.
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