September Sees Inflation Dip to 3.8%: Grocery Prices: National inflation declined to 3. 8% in August, from 4.0 % in July, according to data released by Statistics Canada on Tuesday. This represents the end of two consecutive months in which inflation surged.
The agency reported that the annual rate of inflation slowed “broadly” in September due to indications of ongoing respite at grocery stores.
September Sees Inflation Dip to 3.8%: Grocery Prices Show Improvement
According to StatCan, grocery store prices increased by 5.8% in September for Canadians, a decrease from the 6.9% increase observed in July.
Meat, dairy products, vegetables, coffee, and tea all experienced a deceleration in month-to-month price growth, whereas edible fats and oils, bakery products, fish, and fresh produce all experienced more rapid price increases.
Increased mortgage and rental costs were the primary contributors to inflation during the month, according to StatCan.
According to the agency, gasoline prices increased by 7.5% annually at the pump, but decreased marginally on a monthly basis.
The cost of airfare for Canadian citizens decreased by an absolute 11.1 percent year-over-year during the same month. The price reduction coincided with a gradual increase in the number of flights offered by airlines over the past year, according to StatCan.
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Annual price reductions were also observed for durable products, such as appliances and furniture, among Canadian consumers. September saw a slowing rate of price growth for new passenger vehicles, which StatCan attributed to increased supply of new cars on the market.
Last month, the closely monitored core inflation metrics of the Bank of Canada also exhibited a modest deceleration.
The inflation figure released on Tuesday precedes the October 25 announcement of interest rates by the Bank of Canada.
In recent months, inflation has been obstinate, increasing in July and August after falling to 2. 8% in June.
Andrew Grantham, a senior economist at CIBC, stated in a note published on Tuesday that although inflation remains above the Bank of Canada’s target of two percent, the September inflation report’s deceleration and indications of economic cooling elsewhere should suffice to prevent the central bank from having to raise interest rates once more.
