Canadian Consumer Price Index in September Posts Smallest Yearly Increase Since February 2021

Statistics Canada (StatsCan) reported that on a year-over-year basis (Sept. 23 – Sept. 24) the Consumer Price Index (CPI) in Canada rose 1.6%, following a 2.0% CPI increase posted in August. This was the smallest yearly increase since February 2021, when the CPI increased by 1.1%.

The main contributor to headline deceleration was lower year-over-year prices for gasoline in September, down 10.7% compared with August, which was down 5.1%. The all-items CPI excluding gasoline rose 2.2% in September, matching the increase in August for this measure.

On a monthly basis, the CPI fell 0.4% in September, after a 0.2% decline in August. Both the monthly and yearly movement in September were led by lower prices for gasoline. On a seasonally adjusted monthly basis, the CPI was unchanged at 0.0% in September.

StatsCan notes that 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, up 21.0% and food purchased from stores, up 20.7%, which increased during that same 3-year period.