Canadian inflation 2% in September

Canada’s annual inflation rate was 2% in September, Statistics Canada said Friday.

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

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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% on a year-over-year basis, an increase led by a 16.2% gain in natural gas prices. Food prices also went up 2.7% 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%, cigarettes at 11.4% and telephone services at 7.6%.

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

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

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

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

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

“Recent market volatility gives the still more room to stay dovish in their announcement next Wednesday,” says Nick Exarhos of CIBC WM Economics in a note to analysts.

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Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.