Canadian Consumer Price Index Continued to Decelerate in September

Statistics Canada (StatCan) reported today (10-19-22) that the Canadian Consumer Price Index (CPI) rose 6.9% in September on a year-over-year basis, reduced slightly from its 7.0% gain in August. On a monthly basis, the CPI rose 0.1% in September. On a seasonally adjusted monthly basis, the CPI rose 0.4%.

The September CPI marks the third consecutive monthly slowing in headline inflation. Much of the slower pace in the CPI can be attributed to a reduction in the price of gasoline. On the other hand, Canadian’s are still feeling the impact of higher food prices.

Excluding food and energy, prices rose 5.4% year-over-year in September, following a 5.3% increase in August. Prices for durable goods, such as passenger vehicles and furniture grew at a faster rate in September when compared with August.

The Mortgage Interest Cost Index in September continued to place upward pressure on the all-items CPI, as Canadians renewed or initiated mortgages at higher interest rates.