Canadian Manufacturing

Inflation pegged at 2% in Sept.: Statistics Canada

Ontario and Alberta saw the biggest gains of 2.6 per cent each

OTTAWA—Canada’s annual inflation rate was 2.0 per cent in September, Statistics Canada said October 17.

The country’s cost of living had been up 2.1 per cent in the months of August and in July, according to the federal agency’s consumer price index.

The report says prices rose in all consumer categories it looks at in the 12 months leading up to September, with higher housing and food prices leading the way.

The inflation rate for September matched the consensus expectations of economists, according to Thomson Reuters.

Statistics Canada says shelter costs climbed 2.7 per cent on a year-over-year basis, an increase led by a 16.2 per cent gain in natural gas prices. Food prices also went up 2.7 per cent in September, which followed an increase of 2.2 per cent in August.

Contributors to the year-over-year increase included meat at 11.5 per cent, cigarettes at 11.4 per cent and telephone services at 7.6 per cent.

Prices increased in all provinces, with Ontario and Alberta seeing the biggest gains of 2.6 per cent each.

Meanwhile, Statistics Canada found price drops on goods such as furniture at 4.1 per cent, digital computing equipment and devices at 5.9 per cent and video equipment at 7.4 per cent.

On a seasonally adjusted basis, Canada’s cost of living was up 0.2 per cent in September after increasing 0.1 per cent in August.

Core inflation, a figure that excludes some items from the volatile food and energy categories, was 2.1 per cent in September.

In August, core inflation, which is followed closely by the Bank of Canada, was also 2.1 per cent.

Related Posts from the network