(BlackburnNews.com file photo)(BlackburnNews.com file photo)
Chatham

Headline inflation falls below Bank of Canada target in September

Inflation in September fell to its lowest level since September 2021, coming in at 1.6 per cent, lower than the Bank of Canada's target.

The Bank of Canada makes its policy announcement on October 23 after lowering its key lending rate three times to 4.25 per cent.

Statistics Canada's Consumer Price Index Report credits September's slower pace of inflation to falling gas prices. Canadians saw those costs dip 10.7 per cent last month from a year ago after a 5.1 per cent dip in August.

The switch to the winter blend of gas, lower crude prices, and concerns about a weakening economy drove costs down at the gas pump.

Without the price of gasoline factored in, the inflation rate for September was 2.2 per cent.

Canadians saw the price of groceries increase more than inflation for the second month in September. Food bought at stores costs 2.4 per cent more year over year. While the price of seafood, nuts and seeds, and fish fell, it rose for fresh or frozen beef, oils and fats, and eggs.

Meals bought at restaurants increased by 3.5 per cent.

Renters saw their shelter prices increase by 8.2 per cent, a slower pace than August's 8.9 per cent.

September marked the end of the traditional travel season, so the cost of flying to a destination fell 4.4 per cent from 12 months ago and 14 per cent from August.

The next Consumer Price Index Report, which will detail inflation in October, is due on November 19.

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