According to data released by Statistics Canada on October 19, Canada's annual inflation rate (Consumer Price Index, CPI) for September was recorded at 3.11 TP3T. This was a slight increase from 3.01 TP3T in August and lower than the expert forecast of 3.21 TP3T, but it surpassed the Bank of Canada's inflation control limit of 31 TP3T again for the first time in three months.
- Main causes: Energy prices led inflation, rising 191 TP3T from the previous year, and gasoline prices surged 27.81 TP3T.
- foodstuffs: Supermarket grocery prices rose by only 1.71 TP3T, marking the lowest increase since May 2024.
- Housing costs: Housing costs increased by 1.81 TP3T, and rent increased by 2.81 TP3T.
- Core prices: The median CPI, a key indicator excluding highly volatile items, was 1.91 TP3T and the trimmed CPI was 1.81 TP3T, indicating that underlying inflationary pressure is actually slowing down.
The figures for this September are the final inflation indicators released ahead of the central bank's interest rate decision on October 28. While the market expects the current base rate of 2.251 points to be maintained in October, it is also reflecting the possibility of a 0.251 point hike in December; therefore, households with loans or mortgages need to closely monitor interest rate trends at the end of the year.
Source: Reuters
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