Moderate Inflation: Canada Records 3.8%

18 Oct, 2023

Moderate Inflation: Canada Records 3.8%

Gasoline prices registered a 1.3% drop during the month, although they remained 7.5% higher over the past 12 months. Fuel costsIn September, Canada's inflation rate decelerated to 3.8%, marking a decrease from the four percent reported in August, according to Statistics Canada's recent data release. Notably, this figure came in lower than what economists had anticipated.

Statistics Canada explained that the moderation in the cost of living was widespread and resulted from reduced prices across various goods and services categories, including travel, durable goods, and select grocery items. Notably, the cost of living declined by 0.1% on a monthly basis in September, marking the first such decline since November of the previous year.

When gasoline is excluded from the inflation calculations, the rate would have been 3.7%, representing a decrease from the 4.1% reported the previous month. Statistics Canada noted, "Large monthly gains in September 2022, when grocery prices increased at the fastest pace in 41 years, fell out of the 12-month movements and put downward pressure on the indexes."

The decline in various factors, ranging from food and energy costs to core inflation, is noteworthy. Furthermore, costs for services remained stable during the month. This data suggests a more positive economic outlook, with various sectors contributing to a reduction in the inflamation rate