Higher gas prices drove inflation up to 3.1% in September: StatCan
The annual pace of inflation rose to 3.1% in September as war in the Middle East continued to drive up gas prices, Statistics Canada said Monday.
The agency said the acceleration was led by a 27.8 % spike in gasoline prices last month compared with a year earlier, despite the switch to the less expensive winter gas blend.
Excluding gasoline, consumer prices increased 2.2% year-over-year in September.
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The agency said fuel oil and other fuels surged 57.8% in September, hitting consumers hard in Atlantic Canada where many homes are heated with oil.
Meanwhile, grocery prices increased 1.7% last month, the smallest yearly increase since May 2024, according to Statistics Canada.
Driving the slowdown was a 2.9% drop in prices for fresh vegetables, while sugar and confectionary items fell 2.7%.
Beef prices, meanwhile, rose at a slower pace in September, up 8.7% compared with an 11% increase in August.
Despite the year-over-year slowdown, the agency said prices for groceries have increased 33% since September 2020.
Statistics Canada said shelter prices rose 1.8 per cent in September, up from 1.5% in August.
In addition to the spike in fuel oil, the agency said a 4.9% increase in mortgage insurance and 1.2% increase in home maintenance and repair costs lead the acceleration.
