Higher gas prices pushed inflation in September to 3.1 per cent year over year in September, up one percentage point from August.
Gas prices rose 27.8 per cent last month compared to August, and without gasoline, the inflation rate was 2.2 per cent, compared to the month before.
The Statistics Canada Consumer Price Index blamed higher gas prices on continued uncertainty in the Middle East.
Inflation on groceries slowed in September, rising 1.7 per cent for food bought in grocery stores, after rising 2.8 per cent in August. September's inflationary increase was the smallest since May 2024, and is the second consecutive month the cost of food decelerated.
The cost of fresh vegetables fell 2.9 per cent, while sugar and confectionery fell 2.7 per cent. Food preparations rose 1.8 per cent. The cost of fresh or frozen beef climbed another 8.7 per cent.
Since September 2020, grocery prices have climbed 33 per cent.
Shelter costs rose 1.8 per cent year over year last month after rising 1.5 per cent in August. Home and mortgage insurance cost another 4.9 per cent, home maintenance and repair costs rose 1.2 per cent, and rent was up 2.8 per cent year over year.
This month's report also included the cost of tuition. Across Canada, tuition rose 2.4 per cent over last year's increase of 1.7 per cent. In Ontario, tuition cost students another 2.1 per cent more, the largest increase since 2018.
Compared to other G7 nations, Canada's inflation rate fell in the middle of the pack. The U.S. inflation rate in September was 3.7 per cent. In Germany, it was 3.3 per cent. 3.1 per cent in France, and 4.2 per cent in Italy. Japan's inflation rate was 2.7 per cent.
The United Kingdom is expected to release its inflation report on Wednesday, but analysts expect it to rise by 3.5 per cent.
The next Consumer Price Index report will be released on November 16, 2026.
