Inflation rate eased to 1.6% in September

By: 600011 On: Oct 16, 2024, 10:08 AM

 

Statistics Canada reported Tuesday that Canada's inflation rate eased to 1.6 per cent in September, down from two per cent in August. According to experts, the main reason for this is the drop in petrol prices. Excluding gasoline, the inflation rate for all items was the same as in August at 2.2 percent.
The agency noted that prices - particularly for rent and groceries - remained high despite the easing of inflation.

For the second straight month, food prices rose faster than inflation. Year-over-year prices for seafood, other seafood, nuts, seeds and fish fell, but prices for fresh and frozen beef and eggs rose.

Rents rose 8.2 per cent year-on-year in September, compared with 8.9 per cent in August, albeit at a slower pace, with slower growth recorded in Newfoundland and Labrador, New Brunswick and B.C.


Some analysts believe the Bank of Canada's Oct. 23 meeting is likely to lead to a 50 basis point rate cut. The bank has cut rates three times this year so far.