Inflation continued to ease across Canada in September, with gasoline prices playing a big role, dropping by 7.1% from August. This pushed energy inflation to -10.7% year-over-year, bringing headline CPI down to 1.6% from 2% in August.

Key Highlights:

Food inflation remained stable at +2.8%, and core inflation (excluding food & energy) hovered at +2.4%.


Shelter costs, however, continued to rise, with mortgage interest costs up by 16.7% and rent prices climbing 8.2%.
Encouragingly, only 38% of the CPI basket grew above the 3% inflation target, a significant drop from last year’s 63%.


The Bank of Canada is expected to make a rate cut decision on October 23, with current data showing progress in inflation pressures. Could this mean lower mortgage interest costs soon? Stay tuned!